DOC 400 to take a look at the options #1 is part of the answer get what money you can from the insurance and then go for #2 as the engine is not worth putting back together with only 500 left to TBO (dont think of running on condition after 2000 hrs it just costs more in the long run.)
Dont think about #3 as this may not give warning of shock load damage in the wheel case and you dont want the oil pump to stop without warning........do you ?
Having owned DR400 ,s for the last 20 years i,v never had a prop strike and i think to is time your group take a look to see if these problems have a common thread.