Insurance Term
Actual Cash Value (ACV)
The replacement cost of damaged property minus physical depreciation at the time of loss.
What does Actual Cash Value (ACV) mean in insurance?
ACV accounts for the age, condition, and wear-and-tear of property. It differs from Replacement Cost, which pays to replace the item with brand-new material without deducting depreciation.
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Practice QuestionEasy
Which of the following best describes the concept of Actual Cash Value (ACV)?
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