Process & Workflow
Actual Cash Value (ACV)
Actual cash value is what damaged property was worth at the time of loss, replacement cost minus depreciation, and it sets the baseline for what an insurer paid and can recover.
Also known as: ACV
ACV reflects wear and age, so it is usually less than the cost to buy the item new. Because it defines the amount an insurer actually paid on a claim, it also shapes the recoverable figure in a subrogation demand, alongside adjustments like betterment.