What is the minimum coinsurance amount required for Betty's home?

To determine the minimum coinsurance amount required for Betty's home, it’s essential to understand the concept of coinsurance in property insurance. Coinsurance typically requires that policyholders insure their property for a percentage of its total value, commonly set at 80%, 90%, or 100%.

Assuming Betty's home is valued at a certain amount, let's say $100,000 for illustration purposes. If her policy has an 80% coinsurance requirement, she would need to carry at least $80,000 in coverage. This ensures that in the event of a loss, the insurance company will cover a substantial portion of the damages because the insured value is adequate relative to the property’s actual value.

The choice indicating $80,000 aligns with this typical requirement under most standard policies. Carrying less insurance than this threshold often results in penalties or reduced payouts in the event of a claim, as the policyholder may not meet the coinsurance clause.

The other options may represent various amounts, but they would not meet the standard coinsurance requirements for a property valued at $100,000 or similar amounts if that is the valuation being considered. Thus, $80,000 is the correct minimum coinsurance amount as it reflects the common standard in