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coffeespoons comments on Be a little bit more trusting than most people think sensible - Less Wrong
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Or more costly if you factor in the aggravation of dealing with the insurance company. For those that havn't done it before...well, it's not pleasant unless you know exactly what you are doing. Or have a lawyer handle it, which can be its own brand of pain.
The last time I dealt with an insurance company it wasn't all that painful (maybe 2-3 hours work). Depending on how the OP values her time of course I suspect the cost would still be quite a lot lower than £2000.
Yes, I would expect 2-3 hours work dealing with it plus a loss of utility for the holiday of around £200. If I cost my time at a tenner an hour that works out at under 50p for a luggage free bathroom break, which sounds pretty reasonable to me.