JB, I think you are looking for a one size fits all policy and there is no such thing. Two identical problems that happen in two seperate customer's homes may be handled completely differently. Sometimes the customer may feel better about either replacing/repairing it themselves, sometimes they know a contractor that they have used that can repair/replace it, sometimes we repair/replace it, sometimes we offer money off the bill, and sometimes we send the customer a check to cover the damages.
In most cases, I let the customer decide how they would like us to proceed.