Actual Cash Value (ACV)
Insurance Glossary
A method of settling a claim that pays the cost to replace damaged property minus depreciation for its age, wear and condition. A ten year old roof settled at actual cash value pays less than what a new roof costs to install, and the difference is the policyholder's to cover. Policies written on an actual cash value basis generally cost less than replacement cost policies, and some insurers apply it only to specific items such as roof surfaces or older personal property.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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