FREE · NO SIGNUP REQUIRED · TAKES ~3 MINUTES Run the Coverage Blueprint →

Actual Cash Value (ACV)

What your damaged property was worth right before the loss — after depreciation.

What it actually means

ACV policies pay out the depreciated value of your property, not what it costs to replace it new. A five-year-old roof is worth less than a new one, and an ACV policy pays accordingly — which can leave a real gap between your payout and your rebuilding cost.

Example: A 10-year-old $3,000 roof might have an ACV payout closer to $1,500 after depreciation.

See it in context

Run the free Insurance Coverage Blueprint to see how actual cash value (acv) and terms like it apply to your specific situation — no signup required.

Related terms

Replacement Cost CoverageDeductibleDwelling Coverage

← Back to the full Term Decoder