mkc

This depends on your policy. Most use market (actual cash value). Higher end policies can have replacement cost coverage, meaning you have to replace the item, but the insurance company will pay the full cost (less deductible) for the same make/model or equivalent if that make/model is no longer available new.

Standard policies without full replacement coverage are often pennies on the dollar, especially for items more than 10 years old. That Bernina that cost you $10K 10 years ago will likely only get a few hundred if destroyed in a fire unless you have full replacement coverage and have documented that you bought it new.