When you file a property damage claim, your compensation depends on whether your policy provides for replacement cost value (RCV) or actual cash value (ACV).
If you have an RCV policy, you will be reimbursed in one of two ways. The first is for the cost of replacing damaged/destroyed property with a new item of the same kind and quality.
The other is for the cost to repair the property to its original quality. It all comes down to which option the adjuster feels is most appropriate, given the damage.
But if you have an ACV policy, your adjuster will first determine if the property can be repaired. If so, you will be compensated for the cost to get it back to where it was before the incident.
If not, your insurer will consider the original cost of the property and subtract a bit for deterioration/depreciation to determine its actual worth. And that is the amount you will be compensated.