I would snap it up. I have a small-bodied cutaway Avalon in Brazilian Rosewood that is absolutely beautiful (nearly as nice as my beloved Lowden, but in a different way) and I have it insured for £4500. Avalon took over the Lowden factory in Northern Ireland when George Lowden sold out and set up on his own. They are beautiful hand-crafted instruments. It's an absolute bargain at that price.