Modem Damaged by Lightning

So I could (well my mother could) use some help with our modem after the last lightning storm back home.
Apparently lightning struck and the modem was fried (a VisionNet m505n). Normally we wouldnt care and would simply replace it, however our ISP is expecting us to not only pay for a new unit, but also pay full retail price on the existing unit as well.
The ISP in question is Ponderosa Internet, according to them they are not responsible for lightning damage, and we must pay the full price on both units, existing and new, since we are renting our modem (have been for 5 years).

I need two opinions here, though I dont expect much given the limited knowledge on such a small ISP.
1) Are we seriously held responsible for lightning damage to their product we are renting?
2) Since they refuse to send a new unit out until we pay for the broken one, does anyone know of a modem that would be compatible with the current ISP. We have no other choices for ISPs where we live.
 
one thing to do is see if there a local tv that has a call to action or help line. also look online for sate cable/phone complaint. office or email you may have to send is a consumer complaint to the state ag office. under most rental agreements are things called acts of god. things that a renter cant control. that why there called acts of god. most isp when you return modems and boxes sell most of them as used and the newer units some of them as spare parts for the service trucks. most cable modem are 100.00 new and the isp know any one that rents there modems for more then a year that rental fee is all extra gravy for them. i would myself drop the bad unit off at local isp store or mail it back with tracking. then use your own modem.
 


Thats just the thing, there is no service agreement to be found. Apparently they also stopped returning her calls, probably to just let the auto pay roll over in the next few days and make her pay their fees.