Actual Cash Value (ACV)
Definition. Actual Cash Value (ACV) is the lesser of repair cost OR replacement cost minus depreciation.
Also known as: ACV
The cheaper but inferior alternative to Replacement Cost coverage. ACV pays significantly less on older equipment — sometimes only 30-50% of what replacement would cost.
Sources cited
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Reviewed by California-licensed Property & Casualty insurance agent
Jason Wootton (CA License #0I94454). Not insurance advice, an individual recommendation, or a solicitation in any state. Insurance regulations vary by state. For specific coverage decisions, consult a licensed insurance agent in your state.
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