Just a thought, you may be able to pick up the part in junk yard from wrecked Jeep, unless the repair people have already replaced it.
On the extended warranty, they generally state that they cover damage that occurs as a result of the failure of a "covered part". Since they've already admitted that they will cover the cost of the TIPM, the TIPM is OBVIOUSLY a "covered part" or they would not be paying for it. So therefore it follows that the damage caused by the failure of the TIPM should be covered as well.
It boils down to two things, neither of which can anyone help you with YET: First, the verbiage of your specific Extended Warranty, Second, how did the repair shop write up the repair. They should specifically state on the repair order that the Housing damage makes the housing unusable, and that the damage was a result of the failure of the TIPM. They shouldn't have a problem doing that. If you have already sent the Warranty People a copy of the repair order, and it doesn't state that clearly, ask the repair shop to write a letter of clarification stating that the damage to the Housing was a result of the failure of the TIPM. . . .better yet, YOU write the letter, and ask them to reword it if they like, but to state that on Company Letterhead.
If you feel the verbiage of the Extended Warranty should cover the Housing, and the Warranty Company still refuses, call your state insurance commissioner, and ask them if this falls under insurance. If so, file a complaint. If not, they will probably refer you to the State Attorney General's Office, open a case through them. We've used both in various states, and have found them to be VERY helpful, as long as you present your case clearly, logically, and have written records/contracts/receipts to back up your case.
All of our dealing with insurance commissioners (2 to date) and AG's (3 to date) have been settled in our favor, and QUICKLY, in just about the time it took for the various offices to send a letter to the responsible party. In two of the occasions, the parties stated that they still felt they were in the right, but as a gesture of goodwill, and because they were such nice guys, or words to that affect, they would just pay up . . . .yeah, right, frankly, we didn't care as long as they made it right, which they did.
Good luck with your Extended Warranty Company. Just remember, they are in business to take your premiums, and deny as many claims as they possibly can, and they will get away with exactly as much as YOU LET THEM get away with!
Scot & Laura Kellersberger
2001 Newmar 4 wheel drive Dutch Star 3891, 2005 GMC Canyon. Demco Tow Bar & Baseplate U.S.Army (ret) 1985 - 2006