hey alex,
i am going to call RACV on monday to try to add my camera and a few other portable items to my house and contents insurance. and also ask them if it is covered for water damage as well. if so, they are never going to know i was diving, and it simply fell in the fountain. and i'll insure it for the the value of the camera and housing together.
that is what i have found other do.
lucas
ps, you could also see if it will be covered by your travel insurance. i have heard of people who flooded their camera. and the went to a restaurant in a dodgy area, put it down, went for a walk and it was stolen. gosh darn it, now i'll have to replace it.
but you would have to be an unscrupulous kind of person to do that....