From here, I would estimate it is totalled.

Insurance companies always want to 'total' when they can.

Of course, in this case, they are probably right.

I had an electrical meltdown once that I fixed myself. Not as bad as yours. Sorting out a mass of melted wires is not for the faint of heart. Plus, you never know if you have gotten every melted wire, since a short in one place can cause a meltdown in a remote spot. For the labor involved, it was not worth fixing in retrospect.

Let us know if you determine the source of the fire.

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1986 300E 5-Speed 240k mi.