Water heater leak destroyed my hardwood floors - adjuster just gave me $4,100, contractor says it'll be $11,500. What now?

Last week our water heater started leaking slowly and we didn't catch it for a few days. By the time we did, about 600 square feet of original hardwood floors had buckled pretty badly. We filed a claim right away, got temporary moisture readings done by a remediation company the insurance company sent out. They confirmed water damage throughout and put in dehumidifiers for a week.

The adjuster came out two days ago. He was friendly enough but seemed to move pretty fast. He said the flooring was already showing "pre-existing wear" and that they would cover the damaged area but not adjacent rooms even though the flooring is connected and you can't replace just a section without a visible seam through the whole open-plan space. He handed me an estimate for $4,100.

I got an independent estimate from a flooring contractor I've worked with before. He walked the entire area and said the matched replacement with the same flooring profile would be $11,500 - and that's not even including the baseboards. The gap is almost $7,500. The adjuster is saying the pre-existing wear reduces the value and that partial replacement is the correct approach. Has anyone successfully pushed back on this kind of "matching" argument?