The modules currently do "rate shopping", meaning you get (usually close) estimates of the actual shipping charge when you take the box to fedex to be shipped, or use online tools to create the shipment. The modules do not initiate any shipping/pickup/etc.! You are responsible for that. So for insurance, what we would do is flag the package as needing insurance (by giving the package a monetary value), and the estimates received back by the module should reflect the insurance cost. It should not be a big deal. I would think an hour or less to implement and test.
I do not know if the VM114 module will work with VM113, I have never tested it. There are quite a few core file updates that may or may not cause issues by going backwards a revision.