Failed fuel injectors

I have a '14 F Type with 42k miles. Was running great but then engine light suddenly came on and car was sputtering in lower gears. Took to Jag dealership next day and they said 3 fuel injectors failed. Gave me a quote of $2400 to fix. I had them call my extended warranty company (Liberty Bell in NJ) to file a claim. I am supposedly covered bumper 2 bumper with their "platinum prime" tier coverage which definitely covers fuel system. However, they denied the claim blaming it on flood damage the car incurred 6 months earlier. The dealership and every other mechanic I've spoken with denies that the flood has any correlation to the fuel injector issue. Anyway, I told them to go ahead and fix it and I would pay the 2400 out of pocket. But then they called me back a few days later and told me there was a "situation". When I called back they told me that the injectors had seized or were "fused" inside the engine's cylinder head. The estimate now is at $12,000+ because they say they have to send out to a machine to remove the stuck injectors and this is very labor intensive (40+ hours). I don't know what to do and I love my Jag but at this point I may have to sell it for parts and scrap metal unless someone has a better idea because I cannot pay that kind of money. If this situation has any relation to the flood damage from 6 months ago it would be easy...I would just reopen my claim with Geico my regular insurance who covered that damage the last time. As far as Liberty Bell, I can't even sue them in FL where I live as their contract says they can only be sued in NJ and it must go to Arbitration first. After the flood 6 months ago, the fix was a new alternator, auxillary battery and air flow sensor. In total it was a little over 2g which was covered by Geico. But for what Jag of Ft. Laud is charging now, I could probably get a whole new engine. I have also gotten Jag USA involved and they assigned me a case, but I don't know how effective that will be. Any good ideas much appreciated. Thank you!