Examples:
Carl's stereo was destroyed by a fire in his home. His insurance company determined Carl's reimbursement amount for the stereo was $60 by taking the current value of a comparable new stereo and subtracting any depreciation factors (wear and tare, age, etc.) Replacement Cost - Depreciation = ACV
Definition:
What it will cost to replace an item at the time of loss after subtracting depreciation. Common method of determining the amount of reimbursement for a loss.
Related Terms
• Claim
• Limits
• Loss
<Back to Last Page> <Full Glossary>
Actual Cash Value (ACV)
<Back to Last Page> <Full Glossary>
Explore Personal Insurance
Must Reads
About.com Special Features
Building Your Small Business
Get the best tips on starting up and staying competitive. More >
Best Moves in a Bad Economy
Stay on top in this tough economy with our smart, easy-to-follow financial tips. More >
©2009 About.com, a part of The New York Times Company.
All rights reserved.