Which of the following percentage levels of Coinsurance is not acceptable?

In the context of property insurance, coinsurance is a clause that requires the insured to carry a certain percentage of insurance coverage on their property, which is meant to encourage policyholders to insure their property adequately. If the insured fails to meet the required coinsurance percentage at the time of loss, they may face a penalty regarding the amount the insurer will pay for a claim.

The acceptable levels of coinsurance commonly seen in insurance policies are typically set at 80%, 90%, or even 100%. These levels signify the minimum amount of coverage the policyholder is required to carry to avoid penalties in the event of a loss. While lower coinsurance percentages, such as 75%, may be found in some policies, they are generally not acceptable by standard industry practices for residential properties, which often advocate for higher percentages to ensure adequate protection.

Thus, a percentage of 75% is considered less than the usual acceptable threshold, making it an inadequate level of coinsurance for most residential insurance policies. Standard practice favors percentages such as 80%, 90%, or 100%, ensuring that policyholders are more likely to cover the full replacement cost of their assets.