Actual cash value

Actual cash value also referred to as "ACV." A method of valuing insured property that is computed by subtracting depreciation (based on the property’s age and condition) from its replacement cost. Compare "Replacement cost."

Actual cash value is a value of property at the time of its damage or loss, determined by subtracting depreciation of the item from its replacement cost.   

Share it:  Cite

More from this Section