It sounds, and I am guessing somewhat here, that kitchenelf is reviewing a policy that has 'replacement' value.
As such, it really doesn't matter what the item cost you, you have a right to the value to replace it.
Found it in a dumpster or mortgaged your house to buy it, whatever it costs to replace the item, you get (hope you never have to fight with an insurance company, we have. No matter how your policy is worded you have to fight for every dollar).
Replacement insurance is more expensive, but for catastrophic damage it is very nice to have.
And we have had too many of them.