Quick definition
Actual cash value is an insurance valuation that generally accounts for depreciation from age, condition, or wear.
ACV is often lower than replacement cost value because it reflects depreciation, subject to policy language and claim handling rules.
Definition
What it means for you
Why does actual cash value matter?
ACV is often lower than replacement cost value because it reflects depreciation, subject to policy language and claim handling rules.
Sources
- PRE Editorial Reference Standard. Professional Roofing Encyclopedia.
Tier 2 authority · industry
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