Sonny and Cher have their home insured under a HO-3 policy. The amount of the coverage on the dwelling, $100,000, has been left unchanged for several years. Yesterday, the home was struck by lightning, causing $10,000 of damage, as measured by actual cash value, and $18,000 of damage, as measured by replacement cost. The replacement cost of the home at the time of the lightning damage is estimated at $150,000. In this situation, which of the following amounts will Sonny and Cher recover from the insurer for this loss (ignoring any deductible) ? Question 7 options: a) Nothing, because the insurance is less than 80% of replacement cost. b) $10,000, the actual cash value of the damage. c) $15,000, five-sixths of the replacement cost of the damage.