After sending this information off to Commerce Insurance, they came back
and
said "We'll give you $500 because we do not think the tree needs to be
replaced and that's all that the damaged bark is worth. We sent an
adjuster
to look at the tree and it looks just fine."

Insurance companies (or their CEOs) don't get rich by writing out checks.
Make no mistake about it, their business is making money, not taking care of
you. In dealing with insurance companies, I've never been able to get
anywhere near reasonable restitution without a battle. A regular adjuster
will not EVER be able to do it for you, you're going to have to go farther
up the food chain.

And, unfortunately, in the case of a tree (instead of a car), you're
probably going to have to file a lawsuit. If your locality allows that
large of damages in small claims court, and you feel sufficiently prepared
to go up against the insurance company, you can do it very cheaply. But
make no mistake about it, though, it's going to be a battle.

steve