What Is Actual Cash Value (ACV)?
The replacement cost of damaged property minus depreciation for age and wear. It is a common basis for settling property losses.
Actual Cash Value (ACV) across 5 exams
Actual Cash Value (ACV) appears on the following exams. Each defines it in the context candidates are tested on:
- Property & Casualty
- The replacement cost of damaged property minus depreciation for age and wear. It is a common basis for settling property losses.
- Personal Lines
- A method of loss settlement equal to the replacement cost of damaged property minus depreciation for age and wear. It typically pays less than the cost to buy the item new.
- All-Lines Adjuster
- The value of damaged property calculated as its replacement cost minus depreciation for age, wear, and obsolescence.
- Surplus Lines
- A method of calculating insurance claim payouts based on the replacement cost of property minus depreciation. ACV typically pays less than replacement cost but reflects the true market value of the damaged or lost item at the time of loss.
- Public Adjuster
- The replacement cost of damaged property minus depreciation for age, wear, and condition at the time of loss.