This is totally unfair and unprofessional...
With Device Protection, if a device is broken or lost and a replacement is needed then Brightstar will provide a replacement to you. Based on their terms, this replacement can be the same or similar device (depending on availability) and it can be new or reconditioned. All of this information can be found on their site and within their terms, check out this link for more information.
In terms of their replacement devices they always offer a 12-month warranty and if anything is wrong, they'll again repair or replace the device. There is also a 12-month warranty on parts and workmanship so if anything goes wrong you can contact them again.
That said, their terms and conditions are solely their own and if there's anything you want to investigate further, we suggest contacting them directly to discuss things further. Their support number is 1-866-327-3399.
I do hope that clears things up a little! Keep on mind that a repair or replacement through Brightstar using your Device Protection does generally cost much less than buying out your phone, purchasing a new one, or doing an out-of-warranty repair.