It has come to my attention that my policy has a Co-Insurance clause. I learned this because my brother has a similar policy and sustained $15000 damage on a boat insured for $19000 with replacement value insurance to that amount.
His adjuster assessed $15000 to repair all the covered damages. Then the company said that due to co-insurance clause they would cover $0.48 of each $1.00
The clause on my policy reads
"The insurer shall not be liable in the event of loss or damage for any greater proportion of such loss or damage than the amount hereby insured bears to 100% of the actual cash value of the property insured at the time such loss or damage occurs."
Is this normal? My initial understanding of my policy was that damages would be covered 100% less deductible up to but not excluding the declared value of the boat. Apparently I was wrong. Should I be looking for a new policy?