Clarification Required on Insurance Premium and Replacement Cost Calculation

I purchased the property in April 2017 for R850,000.00.

The insurance details are as follows:

2025: Annual insurance premium – R22,418.82; insured amount – R4,152,016.00 2026: Annual insurance premium – R27,072.47; insured amount – R4,525,629.00

In addition, my flexi reserve was deducted together with the insurance premium amounting to R27,072.46.

When trying to understand the above, I spent more than an hour on a call with five different people. No one seemed to fully understand the issue, except one person who was able to provide some clarity.

Can someone please help make sense of how a property purchased for R850,000 in 2017 can now have an insurance value of more than R4 million, taking into consideration replacement costs?