How do you depreciate the value of a pet's life?

When our house burned down, I never thought dealing with the insurance company could be so blood boiling.  I've mentioned how we have to write down everything we can remember that we lost and how much we paid for it.  Then the insurance company will depreciate it.  After that, they send us money to buy the item back, but things cost more these days.  If it costs more to replace than we paid, they supposedly will send the difference.  Ok so our sofa cost about $2,000 when it was new 5 years ago.  I don't know how to figure the depreciation, but say they will send us $1,000 for the sofa.  How are we supposed to repurchase the same sofa with only $1,000?  I don't understand.

Well, how in the hell do you put a price on the life of a pet?  Are they going to depreciate his value because he was 11 years old and a cat can live for more than 20 years? Is he less valuable because we adopted him? Because he was declawed? Because he was neutered? WTF?  I just don't get it.  He can't be replaced.  Zeke was Zeke.  Every pet is different their own special way.  His life was priceless.