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So there's no option to borrow the book--as if it is a new item for you?
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No, on the product page for an book you already own, there is a button (above the orange "Buy one with 1-Click" button) that says Read for Free with Kindle Unlimited, but when you click on the Read for Free button it takes you to the next page saying that you already purchased the title.
I honestly haven't gotten much out of the Prime lending library, partly because you can only borrow a book once and that's it. Sometimes I lose interest in a book and want to come back to it later. Prime is worth it for me for the shipping benefits though.