It ultimately depends on your policy wording. Have a read of your documents, it will tell you in those.
Some will fix the item for you. Some will give you the money to get the item repaired yourself. Some will reimburse you for a repair. Some will replace your item. Replacements will either be new or refurbished, or a product of a similar value. If a suitable replacement can’t be sourced, they will give you the value in money. New for old policies will pay the price you paid for the item, other policies will pay less as the value of items degrade over time. All of these can vary by item too, which your policy documents will clarify. You can either find those in the welcome pack you may have received via email or post when you took out your policy, or via your online account if your insurer has an online accounts service.
No one can really answer your question to any degree of satisfaction for you, as it’s very unlikely any of us will have exactly the same policy, with the exact same processes, for the exact same items as you do.
If you could provide the name of your insurer, and the item in question, I can have a look to see what the usual process is for you. But again, there’s no guarantee it would apply for your policy.