To the OP i hope you get your problem solved soon.
Very disappointed by the amount of unhepful posts though. As for the insurance recovery situation, been there my self. I know the small print is evil and that far to many people my self included believed the bigger named firms would see me okay. I could write a massive post on the horrors of European recovery and its faults but apparently no one would believe me here.
I'm sure that we all hope that Graeme will be able to solve his problem soon.
To explore exactly what insurance cover was in place to bring the car and caravan back from Spain is not being unhelpful.
Forum members have tried to find grounds to ensure that any insurance policy in place complies with the policy that was purchased, but sadly it looks as though Graeme has fallen foul of the small print that you mentioned.
If any positive can be gleaned from this unhappy episode it would be that forum members might remember to carefully read any small print to be absolutely certain of what is covered and what is not.