Home owner's insurance question

This all sounds like a potential nightmare.  Let me set up a possible scenario.  You have a home owners's policy with a $200,000 limit of liability with replacement coverage for personal property.  Your home has a fire and you have a total loss of your $150,000 stereo system.  You make a claim with your insurance company for that $150,000.  You do not have any money to re-buy your system.  What are you going to get paid by the insurance company?  Are they going to replace your system even though you have no money to do that yourself?

Elizabeth is correct in all aspects with one respectful correction. And by the Elizabeth you could teach me volumes on AV...

Contents Coverage B or personal property,  
does not have a “co-insurance penalty” clause as does Building coverage A does. While you are required depending on the carrier to carry 80-100% of replacement cost on your home, your contents has no % that is required. You could have $50k contents but only carry $25k contents and still get full recovery on a $25k loss. The exception is the federal government with National flood insurance, carry 100% across the board or FEMA might get you!
Dave 
38 year SF agency owner

@dave1980 Correct, there is no co-insurance requirement on personal property. I was going to mention that earlier, but we seem to be getting in the weeds here.

@Tatyana69   Rubbish, a adjuster cannot "decimate" your claim. That is called bad faith and is illegal. The key is to have documentation to support your claim, photos, receipts, etc.

@philharmonicpete  In your scenario, you would prepare an inventory of your major items, stereo and otherwise.

Lets say you had an amplifier with a replacement cost of $20,000 and the actual cash value (used value) is $15,000. The insurance company would pay you the $15,000 and as soon as you submit documentation that you have ordered the replacement, you would get the additional $5,000. You could replace it with a more expensive amplifier, but can only collect up to $5000. Also, in most states insurance also pays the sales tax.

Sure it's a PIA, but having a total loss fire by definition is a PIA, a bigger PIA without insurance. 

@ericsch  thanks so much for your answers.
Would photographs of your system be sufficient proof for an insurance company to support a claim for loss?