Michele's homeowners policy had no applicable endorsements that would apply when her diamond ring slipped off her finger and was flushed into the public sewer system. The ring has a replacement cost value of $3,000 and an actual cash value of $2,000. Michele's HO 3 homeowners policy will 

a. not cover this loss because it did not involve a covered peril. 

b. cover this loss subject to a $1,500 sublimit on jewelry. 

c. cover this loss for its $2,000 actual cash value. 

d. cover this loss for its $3,000 replacement cost value