Policy Terms
Actual Cash Value
Definition
A method of valuing insured property that calculates the replacement cost minus depreciation. ACV accounts for the age, wear, and condition of the item at the time of loss.
In Zach’s Words
“Imagine you bought a TV five years ago for $1,000. It breaks in a covered loss. ACV says: what's that five-year-old TV actually worth today? Maybe $400. That's what you'd get. It's the 'used car value' of your stuff — not what you paid, but what it's worth now.”
— Zach Nadler, CIO