Definition: Actual Cash Value describes 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.
Also Known As: ACV
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
