Some of these came out of the factory with thinner bluing. I have a 1939 that looks positively translucent...
I would think insurance of $1500 minimum if all matching and at least 90% finish coverage. Your frame may be more worn than that. Look at one of the online dealer sites for approximate retail values.
Jerry Burney on this board can repair your holster, and you should consider having him do that work. It would be worth $300 or so.
I never shoot collectable Lugers. Your results may vary... See the "posts of regret" here. If you want to shoot one, get a non-matching or refinished one.
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 Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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