Insurhi logo

Glossary / actual-cash-value

Actual Cash Value (ACV)

Related category: Home Insurance

Definition

Actual cash value is replacement cost minus depreciation for age and wear. On home and auto claims, ACV settlements can be materially lower than replacement-cost payouts for older items.

Related reading

Related terms

Insurhi content is informational only and not legal, financial, or insurance advice. Always read the full policy wording and consult a licensed agent before purchase.

← Back to glossary index