Insurance premiums sucked out of their thumbs

I took out insurance with dotsure a year or more ago for my Samsung Folder 2 that i bought on E-bay from the states. They asked me upon taking out this insurance what amount i would like to insure the hadset for and i said R4000, to be able to cover the shipping cost as well as the handset. According to this amount they worked out my monthly premium. Upon having to put in my first claim however, they informed me that the insurance does not cover the shipping cost. They ended up paying out way less than the value of the phone, as i bought it new and the consultant went and looked at a second hand phone online. So i have to ask, Why ask me what amount i want it covered for if you're not gonna pay out to that amount? Why do i pay X amount of money a month for a insurance premium, for an insured amount that you then refuse to pay out and lastly Doesn't replacement value of the phone cover how much it will cost to replace this phone, which in this case is the shipping fee as well. I would like someone to have a listen to my initial converation with their consultant and see what exactly was said between us.