David has a homeowners (HO3) policy that provides $380,000 of insurance on his dwelling, which has a current replacement value of $500,000. Home values are increasing annually in the high single- to low double-digit percentage range. Ignoring any deductible, how much will David collect if a kitchen with a replacement value of $34,000 but an actual cash value of $28,000 is destroyed in a fire? David also owns a small home-based business with office furniture, computer, and software. Discuss if the homeowners policy will cover his home-based business property and casualty needs. Furthermore, discuss what other considerations, such as riders, additional coverage, and types of coverage could or should be considered and why.