The replacement cost of a home covered under the HO-3 policy, containing an 80% coinsurance clause, is $400,000. Assume the home is insured for $280,000 and a $42,000 loss occurs. A $1,000 deductible applies. How much will the insured recover if the damage is repaired? A. $28,400 B. $35,750 c. $41,000