My wife bought a refurbished iPhone 4S on Black Friday for $0.99, and lost it over Christmas. Filed a claim with Amex, and they paid $1. Nothing like what it would cost to replace it. So don't expect Amex to protect your purchase.
It says right there that they will reimburse you up to the price you paid for it. You paid $1 and got reimbursed $1. I'm surprised they even honored your claim, given they don't normally cover refurbished items. They probably honored it anyway just for the laugh.