Quoted from Menace

Not if you have your policy setup to pay full replacement value.

D

That's the main thing with insurance, you can pay for what you want to be covered for... and yet you will still forget something  

Full replacement value means what it means, they will pay full if you replace it with a receipt, they will pay less if you take the cash. At least that how it worked for mine, not saying yours isnt different thou.

Quoted from Azatotht

Watchout, they will pay to have it fixed if its only broken or can be fixed.. they wont literally pay replacement for stuff that isnt completely junked.

Take it from my experience, they will clean and fix what they can and will pay for the losses. You can opt to "cash-out" instead of replacing your goods too, in that case they will pay value minus depreciation of somewhere around 30-40%...

An insurance company can elect to repair or not repair depending on which option is the most viable. Is the item salvageable (repair) or is it beyond repair (no repair-replace with like kind and quality)? If they deem it repairable, they could elect for that option first before replacing it with new. If it is not repairable, they would replace it. For example, a lightning strike causes a power surge to your computer. Before replacing the computer, they could elect to try and fix it first(could be something as easy as replacing a power supply).  If however the computer caught fire after the surge, they would probably end up replacing right away it with a new computer without considering a repair. Either way you end up with what you had prior to the loss occuring(replacement cost).

Quoted from Azatotht

That's the main thing with insurance, you can pay for what you want to be covered for... and yet you will still forget something  

Full replacement value means what it means, they will pay full if you replace it with a receipt, they will pay less if you take the cash. At least that how it worked for mine, not saying yours isnt different thou.

To be sure you have the replacement value, look at the section Certificate of Property Insurance (Condition Particuliere in French), it should be mention beside each coverage (A & C). Most home policy in Quebec and Ontario comes with it.  

To “Cash Out” is to take the money and do what you want with it. They can repair with new parts of same nature or, like most of the time, replace it with a new one. So your old and flaking Gorgar can be replace by a NIB Stern. It always depend of the gravity and nature of damage.

And yes, like I previously mention, water damage have a page full of exclusions. Always look carefully at them.

Ouff, that's a lot of information. Time to go back to work.

I agree with Dr. Who. If you elect to not replace the item (ie your ex-wife's wedding dress which is in your basement gets damaged by fire - why would you replace that?, the insurance company would pay you out based on the actual cash value of the item. This would take into account the depreciated value of the item. If you elected to replace the item, repalcement cost benefits would kick in. Replacement cost is only available if the item is repaired or replaced.