Products under warranty would be covered, but if it is outside of warranty unfortunately it would need to be replaced. The IQ Panel 2 is a discontinued panel and replaced by the IQ Panel 4.
We offer a free month of service applied to your subscription when you upgrade the panel with one purchased through Surety, to help offset cost. The panel by itself can be found here.
Backup restore process steps are described in the post linked below. The backup is already run so the first step would be skipped.