Really crappy news... God damn insurance companies. Whats even the point of insurance if they dont cover things like this? Sounds exactly like the kind of unexpected disaster that you take the damn insurance out for.
Ah well, I'm sure they'll land on their feet. One thing I've noticed from interviews with these guys is that they come across super nice people and dont seem arrogant or entitled in any way (even with the whole internet praising them after the No Mans Sky trailer). Sucks that this could happen to such nice people, but I think their positive attitude will get them through this. Can you imagine something like this happening to Phil Fish? Guy would probably kill himself...