what are we paying insurance for?

Insurance claim rejected. Geyser pressure valve burst caused leakage which resulted in damaged walls in lounge area and damages to laminated flooring lifted due to moist that travelled from where geyser located ran all the way down seeping underneath the floors. We as loyal clients have 30 days to register claims which we did they rejected as they said we were to report it within 24-48 hrs. But terms & conditions states otherwise. Whose in bridge of a contract now?,Also said we lose all money paid over 5 years and should take money from our pockets to fix. Strange how quickly they replaced burst pressure valve but not interested in repairing or even replacing the actual damages the burst pressure valve caused. Disgusted with the service and feel that they quick to refer to their terms & conditions when it boils down to them actually having to meet client expectations they look for all kinds of excuses, in our case refers us to terms & conditions. Were told we had to take out insurance when we chose them as our bond originators. In total regret, we completely horrified with this insurance company and feel like we have been completely **********!, What are we paying insurance for?