This e-bike insurance does seem to be somewhat pricey. Just out of interest I checked the Cycleguard website to see what their rates were like, and if you include third party liability on a £1200 bike you're in for a premium of around £150. My 650 Honda is insured third party fire and theft for less than £100. Admittedly I'm on maximum NCB and there is an excess, but even so.....PS from the wording on the cycleguard policy I don't see why they could refuse to cover the Cytronex. I haven't bothered to insure my Cytronex as it is too expensive for the low risk of it being stolen.
My feeling about insurance in general is that there are two reasons you might need it:
(1) There is a legal obligation - for instance against third party liability in a motor vehicle.
(2) You can't afford to replace whatever it is you're insuring - like your house.
Apart from that, I tend to keep in mind that insurance companies are looking to make a profit, and it's noticeably easier to pay the premiums than it is to persuade them to pay out on a claim.
Rog. (Tighter than a mallard's chuff!)