Looking into getting a M6 GC, ZCP/warranty questions

[bg6]

Hi all,
Would be great to get some insight from owners on this: I've been looking at getting into a M6 GC. I found a high mileage (~88k miles) 2014 M6 GC, ZCP, seller is local, and price is good, clean carfax, all maintenance done, etc. It's not going to be my daily driver, and I'm not planning on tracking it, etc.
I looked into getting a warranty on it and was quoted $5,900 for a 5 year/48k miles exclusionary warranty (Veritas) from a local dealership, which seems reasonable- only 'issue' is they cap the max payout at
"trade in value of the vehicle as provided by the NADA guidelines as of the date of a filed claim, and once the maximum limit of liability has been reached, the contract is done". This trade-in value is currently ~35k, so while this seems fair, it potentially leaves me a bit exposed for a catastrophic engine seizure. I was curious if folks here had thoughts on this i.e. if this is a valid risk.