Actual Cash Value (ACV) is the value of damaged or stolen property after depreciation has been deducted for age and wear.
Actual Cash Value (ACV) is the value of damaged, destroyed, or stolen property at the time of a covered loss after depreciation has been deducted for age, condition, and normal wear and tear.
In simple terms, ACV equals what your property was worth immediately before the loss—not what it costs to replace it with a brand-new item.
While ACV policies often have lower premiums, they generally pay less after a claim because depreciation is deducted before payment is issued.
Knowing the difference between ACV and Replacement Cost can help you choose the right coverage and avoid unexpected out-of-pocket expenses.
Roof Damage Example
$20,000
$11,500
$1,000
$10,500
Our licensed advisors are here to help you review your policy and make sure you have the right protection.
Yes. Actual Cash Value (ACV) pays the item's current value after depreciation for age, wear, and condition.
No. ACV subtracts depreciation, while Replacement Cost pays to replace the item with a similar new one without deducting depreciation.
In many cases, yes. Contact your insurance agent to see if your policy is eligible and to review any additional premium.
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