The reduction in coverage based on the amount of claim paid must be unique to the Islands......that certainly is not the case in North America. Maybe it is a European way of providing insurance.
This is common in the US. If the replacement cost of your home is $500,000 and you only insure it for $300,000, your claim will be reduced proportionately. Insurance companies want premiums for the full replacement cost of your home. Read your policies carefully.
