What Happens To App Data With A Broken/Lost Pre?

What happens to the data in my applications, like if I had a Quicken type app and I had to Full Erase or got a replacement Pre? I'm guessing that the app would re-download and all my data would be gone.
Can anyone give me some insight as to what happens to app data when your loose or have to erase a WebOS device. And if I'm correct is there anyone working on a solution to backup app data?

If you re-download the apps under a different ID, you'll lose all saved data.

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