Imossible to tell. Get multiple estimates and REFERENCES.

It is impossible for us to provide estimates but as Ron suggested, get multiple estimates and references. Once you've settled on a contractor you'll want to make sure he is licensed (both as an electrician by whatever authority licenses electricians in your locale and has a business license in your state/municipality as required), bonded, and has the appropriate insurance. I would make sure he pulls the appropriate permits as well.

In South LA after Katrina, lots of requirements were relaxed to speed things up. I don't know if it was a good thing or not.

It may be nearly impossible to get one estimate let alone multiple.

In which case you were likely screwed.
Sounds like he got one estimate, if he can get one he can get two.

The labor to test salt water submerged wiring often swamps the replacement cost.

Well, I might have been screwed, but not by an electrician in that flooded house. It is still gutted and empty.

I agree with mike kaiser that you should get multiple estimates and references for you to get the most affordable one and most importantly get a contractor that will meet all the requirements of a licensed electrician so the works will be guaranteed.

Here is a link that might be useful: woertz

The estimate I have is from a fully licensed and insured electician. I am only calling contractors who are registered with and licensed by the State of NJ. I don't want to deal with a contractor who can't be bothered to maintain a registration, license, and insurance. However, getting another estimate has not been easy.
I found the point about the cost of testing the system interesting. I guess that is why the adjuster said all of the wiring should just be replaced.

thanks all for your input, and my condolences to Ionized for Katrina losses.