The Kennedys had a kitchen fire causing extensive damage to their dwelling. The cost of repairing the damage is $$40,000.$ At the time of the loss, the limit on the dwelling under the Kennedys' policy was $$200,000,$ but the adjuster estimates the replacement cost to be $$250,000.$ What is the amount of loss the Kennedys will recover from their insurance company?

A$)$

The Kennedys will collect $$32,000,$ minus the deductible.

B$)$

The cost of the repairs is covered in full, minus the deductible.

C$)$

The Kennedys will collect $$40,000$ if the policy includes the replacement cost endorsement.

D$)$

The Kennedys violated the replacement cost provision, and only the actual cash value of the loss will be paid, minus the deductible.