That depends on the policy that you have with your insurance company. When I had my truck broken into, my policy covered the iPod and stereo that were stolen, plus my rental while my truck was in the shop.
The terms of insurance policies vary but it is unlikely that a policy would cover the replacement of an item because it is broken.
Personal possessions are usually covered on your homeowners or renters insurance policies.
They will most likely send the one you had before or cash to cover the cost of it.
The answer is in your particular policy, but if it does not your renters or homeowners policy may cover those items.
It depends on what is broken on the iPod.
fix it
No it wouldn't be broken. If there's something wrong with the Ipod, and it does brake, just restore it.
It depends how it's broken...
It depends. The hard cover will protect the ipod from scrathing while the gel cover will absorb the hit and it doesn't let the ipod resaive any of the affect.
Impossible
No, an iPhone cover cannot fit an iPod Touch. The iPhone covers are slightly larger than the iPod Touch, so the cover would not fit.