Cash payout far less than the amount to replace a ****** iPhone.

My daughter's iPhone12 was ****** from the restaurant where we were having drinks. We then logged a claim with our insurance. My daughter only got the phone in August 2022, so basically still a new phone. They now offered us a cash payout for R7000.00 less than the amount to actually replace the phone for my daughter. When we added the phone to our policy we did provide them with the exact make and model of the phone. They need to place us in the same position before the phone was ****** less the excess. This is not acceptable!!! Why do we have insurance in place???