What was the cost of the original bicycle. I guess my question here would be, is the insurance company actually on the hook for the cost of a replacement equivalent including price increases or are you actually entitled to what the original bicycle cost you.

In the case of the left hooked Look in my post above, one of the prime pieces of evidence used by the laywer to obtain a refund was the itemized reciept for the custom build. The real argument there was what was an appropriate amount to set for depreciation and what if any portions of the crashed bicycle were suitable for use in a replacement/rebuild.

Even my homeowners insurance company is no longer willing to issue a guaranteed replacement policy, but rather a policy with a fixed price for the total loss of my house.

I agree that the tactics used by insurance companies are those of thieves and back alley muggers, but I also see them on the defensive in the face of rapidly increasing prices.