Personal Watercraft Insurance, How Co-insurance Works
Co-insurance determines an insurance limit you need to purchase, perhaps 80% of either replacement cost or actual cash value. Some marine business owners are tempted to reduce annual premiums by opting for less than the total replacement cost because they are willing to gamble that they will never exceed a certain dollar amount. However, there is a penalty for not being insured to value and you will receive only a portion of your entitled insurance coverage. This means you might have to pay a significant amount of the repairs or reconstruction out of pocket.
