It may be true that the other sides of the house that were NOT damaged and will not be covered. They should only cover the damaged parts. They shouldn't be responsible for the siding that wasn't damaged even if it is discontinued. What you could do it work out a deal with the contractor to do the whole thing. I suspect the contractor may want the work and may be reasonable.
Thank you for your reply, nmh. I am not trying to “get” anything out of this damage.
I will take your advice and call them in the morning.