P2P storage systems use replication to provide a certain level of availability. While the system must generate new replicas to replace replicas lost to permanent failures, it can save significant replication cost by not replicating following transient failures. However, in real systems, it is impossible to reliably distinguish permanent and transients failures, resulting in a tradeoff between high recovery cost and low data availability. In this paper, we analyze the use of timeouts as a mechanism to navigate this tradeoff. We address the challenging problem of how to choose a timeout to walk the fine line between causing unnecessary replication due to detection inaccuracy, and reducing availability due to detection delay. We conduct simulations based both on synthetic and real traces, and show that the performance of our selected timeout closely approximates the optimal performance that can be achieved by timeouts, and even that of an "oracle" failure detector.