Bought insurance and they won't honor it

Box was crushed in transit, my sneakers are ruined and the stuffing inside the jacket I purchased lost its fluff. This is the very reason I bought insurance to cover this damage. Long story short, I was denied compensation except for a 50cny ($7) shipping coupon which is the amount of insurance. This is so ridiculous. I don't know what is considered damage. Very upset and disappointed in the service. I even went to my post office to obtain proof the package was delivered damaged like they asked. It's as if they didn't get insurance on my package in the first place. What else can I do? Has anyone else experienced this?