What can Betty do to avoid coinsurance penalties in the future?

To avoid coinsurance penalties in the future, increasing her actual coverage to meet or exceed the coinsurance requirement is essential. Coinsurance is a provision in an insurance policy that requires the insured to carry a certain percentage of the insured value of the property. If the insured does not meet this percentage at the time of a loss, they may be penalized during the claims process, which could result in receiving less compensation than expected.

By ensuring that her coverage aligns with the required percentage, Betty can safeguard herself from potential penalties. This adjustment not only mitigates the risk of underinsurance but also enhances her financial protection in case of a claim. It's a proactive approach that aligns with the principles of risk management in insurance.

The other options do not effectively address the underlying issue of meeting the coinsurance requirement. Consulting a lawyer might provide advice but does not change the actual insurance coverage needed. Reducing home value could lead to inadequate coverage and increased risk of penalties. Changing insurance providers annually may not ensure adherence to coinsurance requirements if the new policies are not adequately tailored to her needs.