Wow that is not looking good there.
@jted posted here and according to his info you are reading 2.2 ohms higher on your element than should be read for a 1200 watt element.
Just a few words and thoughts about heating element health. Recently like in the past few weeks I replaced my 800 watt heating element because it was tripping GFCI receptacles. While troubleshooting the old element the only thing I knew to check was the resistance of the element. It was reading...
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Replacing insulation shouldnt be an issue. I would be more concerned with what caused the burning (if that is true burning). A replacement element is like $25 online i believe (not sure about shipping cost).
Often when the GFI is tripping and the GFI outlet is good that means the element is wearing out. Your's seems to be reading a little high and that burnt looking stuff makes me think you should investigate more around the element and think of replacing it. Last thing u want is a fire :)