Insurance policies reimburse bases on replacement value, what the lost item costs in today's dollars, or actual cash value-the depreciated value of the lost item.
The price which property will realise on the open market, after all reasonable efforts have been made to secure a purchaser who will pay the highest price. The expression actual cash value as applied to Real Estate is synonymous to market value.
A method for placing value on property as of the time of its loss or damage. ACV may be determined as replacement cost, new, less depreciation. The market value of an item may be used to help determine actual cash value. Contrast with replacement cost.
ACV. Replacement cost of lost or damaged property less depreciation.
The cost of repairing or replacing damaged property with property of the same kind and quality less depreciation (which means in the same physical con-dition as the original property at the time of damage).
Under some contracts the amount of loss payables is determined by subtracting an amount for depreciation from the replacement cost (new) of the damaged or destroyed property. (ACV = RC - D).
When a vehicle is damaged so severely that it becomes more costly to repair than the vehicle is worth, it is "totalled". The value that is placed on the vehicle is its worth just before the accident took place. There are several databases that value used vehicles for this purpose, taking into account excess or light mileage, body condition, prior damage, engine condition, etc. This valuation results in the "actual cash value" of the vehicle in the marketplace.
Actual Cash Value is the actual or current value of an item at the time of the loss.
Cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence.
The true dollar amount your car is worth to the dealer.
The value of your property, based on the current cost to replace it minus depreciation.
The fair, usual or reasonable cash price that something will bring on the open market. Also known as "fair market value".
The value of the property when it is damaged or destroyed. This is usually figured by taking the replacement cost and subtracting depreciation.
Actual Cost Value (ACV) is a method used by insurance companies to assign value to a piece of property at the time it is damaged or destroyed. ACV is estimated by taking the cost of replacing the property minus the depreciation from age or "wear and tear." For example, the ACV of a 20-yr. old roof would be less than the ACV for a 2-yr. old version of the same roof. (contrast with Replacement Cost)
The amount of money an insurer reimburses you for a stolen or damaged car; equal to the cost of replacement minus depreciation of the vehicle.
The amount of money it would cost, at the time of a loss, to replace property lost or damaged, minus an amount for depreciation. Contrast this with replacement cost coverage, below.
Also know as the replacement cost. The cost of replacing or repairing damaged property with property of the same kind and quality and in the same physical condition.
Refers to what the items are worth in their used state (not necessarily what it would cost to replace the items at today's prices). The actual cash value is usually the cost of replacing the property with something of similar type and quality - minus depreciation. Actual cash value is sometimes also referred to as 'cash value,' or 'actual value.'
The fair or reasonable cash price for which the property could be sold in the market in the ordinary course of business, and not a forced sale.
A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation. ACTUARY - An insurance professional skilled in the analysis, evaluation, and management of statistical information. Evaluates insurance firms' reserves, determines rates and rating methods, and determines other business and financial risks.
Insurance under which the policyholder receives compensation equal to the cost of replacing damaged or stolen property minus an amount for depreciation for age and use. For example: A tree falls through your roof destroying your eight-year-old sofa that cost $1,200 when it was new, but is now only worth $400. With an actual cash value policy, you will receive $400.
The fair market value of stolen or damaged property immediately preceding the loss, usually approximately equal to the cost of replacing the property with comparable new property, minus any depreciation and obsolescence in the property prior to the loss. See also Depreciation, Fair Market Value.
The value of property equal to the fair market value of damaged or stolen item at the of the loss.
Unless otherwise defined in the policy, actual cash value in California means fair market value. The fair market value of an item is the dollar amount that a knowledgeable buyer (under no unusual pressure) is willing to pay, and a knowledgeable seller (under no unusual pressure) is willing to accept.
the cost to replace damaged or destroyed property with new comparable materials/property less any applicable depreciation.
Insurance policy where the actual cash value of damaged property (minus depreciation) is paid
The sum of money required to pay for damages or lost property, computed on the basis of replacement value less its depreciation by obsolescence or general wear.
What it will cost to replace an item at the time of loss after subtracting depreciation
This is the value of your car minus the accrued depreciation.
The monetary amount that a broker or dealer has invested in a used vehicle. This cash value is used for the purchase and repair of the vehicle.
The monetary worth of a structure for insurance purposes. Actual cash value is calculated by taking the replacement cost of the property and then subtracting the value of the physical wear and tear of the property.
The replacement cost of property damaged or destroyed at the time of loss, with deduction for depreciation. Actual Cash Value cannot exceed the applicable liability limits shown in the declarations of the policy, nor the amount it would cost to repair or replace such property with material of like kind and quality within a reasonable amount of time after a loss.
There is two ways to calculate the value of your property. Replacement cost valuation is the full amount necessary to replace your property today with property of like kind and quality. The other valuation method is actual cash value, which is the cost to replace your property today with materials of like kind and quality, less depreciation.
Frequently used in most auto insurance policy papers especially in claim forms. Most consumers only receive insurance proceeds for the actual cash value of their vehicle. Determining a vehicle's cash value is usually the result of subtracting any depreciation from the original price of the vehicle.
The value of property at the time it was stolen or destroyed, arrived at by subtracting depreciation from the replacement cost of the item.
The value of property determined by subtracting from current day Replacement Cost of the amounts determined by such factors as depreciation or obsolescence; not to be confused with real estate market value for buildings. ACV is traditionally an inexact term and its calculation can vary depending on a property's age, location, past and future usage, and other factors. (See also Replacement Cost)
You'll see this term a lot in auto insurance policies or if you ever have to file an auto insurance claim. That's because most auto insurance coverage reimburses you only for the actual cash value of your car. Your car's actual cash value is calculated by determining its original value, minus the amount your car has depreciated since you bought it.
A type of insurance that pays damages that is equal to the equivalent value of damaged property, minus its depreciation.
The actual or current value at the time of the loss. This may be the cost of replacing the article with a similar model and in similar condition. It may however involve the price of the article plus any appreciation since its purchase and less depreciation.
Insurance under which the amount payable is the current replacement cost of the property new; reduced by an allowance for depreciation, wear and obsolescence.
The actual cash value is usually the cost of replacing the property with something of like kind and quality... minus an allowance for depreciation. A deductible may apply (see Making a claim.)
The value of lost, stolen, or damaged property after taking into consideration the age, condition, amount of use, and obsolescence of the property. It is commonly referred to as "ACV".
the current cost of replacing an article with a similar one in the same condition, considering age and depreciation.
The current value of property, which is the cost to replace that property less the amount it would have depreciated since the original purchase date. | Back
Insurance under which the policyholder receives an amount equal to the replacement value of damaged property minus depreciation.
Sometimes abbreviated ACV. It is the net cost of replacing or restoring property at prices prevailing at the time and place of the property loss, less depreciation. Court decisions interpret it in different ways. Note, this is not the same as Replacement Cost, as depreciation is taken into account.
The cost of replacing or restoring property damaged at today's prices, less depreciation.
Replacement cost of damaged or lost property less depreciation.
The cost of replacing your property with something of like kind and quality minus an allowance for depreciation and a deductible (if applicable).
The amount of the cost of replacement of goods lost or damaged under approved conditions, less depreciation.
The current market value of property minus the itemâ€(tm)s depreciation due to condition or age.
Fair market value of stolen or damaged property at the time of the loss.
The replacement cost of property less allowance for depreciation.
coverage where the insured receives an amount equal to the replacement value of damaged property, minus an allowance for depreciation (see also Replacement Cost Coverage).
If you make a claim on your insurance policy, we will offer you the actual cash value for your lost items. This means, we will give you only what the items are worth in their used state, not what it would cost you to replace the items with new ones at today's prices.
The cost of repairing or replacing damaged property with other of like kind and quality in the same physical condition; commonly defined as replacement cost less depreciation.
The current cost of replacing an article with a similar one in the same condition. Any item has three basic values: original cost, actual cash value, and replacement value. For example, if you originally paid $400 for your living room couch; its actual cash value might be $175. But if it's destroyed in a fire, replacing it will cost you $800.
A valuation method where the value of the amount of loss is set by the current replacement cost of the property, less depreciation.
A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation. (See Replacement cost)
The cost to replace an item or property at the time of loss, less any allowance for depreciation.
A method of valuation of property using “Replacement Cost minus any depreciation for age and conditionâ€. (See Replacement Cost)
Replacement cost of lost or damaged property at the time of loss, minus depreciation.
Unless otherwise defined in the policy, Actual Cash Value is defined in Pennsylvania as fair market value. The fair market value of an item is the amount at which a knowledgeable buyer (under no unusual pressure) would be willing to buy, and a knowledgeable seller (under no unusual pressure) would be willing to sell.
The basis of loss settlement in property insurance policies, which takes into consideration factors such as replacement value less depreciation, market value, rental value, the use of the building, the area in which it is located, obsolescence, assessed valuation, and any other factor which would have an effect upon the value. A working rule-of-thumb definition, however, is "replacement cost new at the time of loss, less depreciation"
The current cost of replacing an article with a similar one in the same condition and exposed to the same wear and tear. ACV is calculated by establishing the current replacement cost of any item and charging depreciation.
An insurance term, the value of a building calculated by subtracting the decrease in value caused by age and wear and tear from the cost of replacing the building entirely.
The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss.
Cost to repair or replace property, taking into consideration age and its condition when it was lost or damaged (Equal to replacement cost minus depreciation.)
A process for valuing property loss. Usually it is defined as replacement cost less depreciation but in some states is defined as fair market value.
An amount equivalent to the fair market value of the stolen or damaged property immediately preceding the loss. For real property, this amount can be based on a determination of the fair market value of the property before and after the loss. For vehicles, this amount can be determined by local area private party sales and dealer quotations for comparable vehicles.
The amount awarded for property damage losses, usually equal to the cost of replacing the damaged item, minus depreciation.
A common clause in property insurance contracts that determines the coverage amount based on the fair market value of an item at the time it was damaged, stolen, or destroyed.
(p) - this term refers to the full replacement cost of an item, minus the amount of physical depreciation at the time a covered loss (flood) occurs.
(ACV): 1) The cost of replacing or restoring property at prices prevailing at the time and place of the loss, less depreciation, however caused; 2) replacement cost minus.
The replacement cost of property minus depreciation. (Actual Cash Value can also be determined by market value, if any.)
Refers to the cost of replacing damaged or destroyed property with new comparable new property less depreciation.
Actual cash value is the cash value of an insurance policy that you receive if you terminate a cash value insurance policy.
An amount equivalent to the replacement cost of a stolen or damaged property at the time of the loss, less depreciation.
This amount is determined by your insurer based on the market value cost of replacing or returning your vehicle to the same level of quality before the claim. The actual cash value may differ by geographical region and can be based on local private-party sales and dealer quotations on similar vehicles.
ACV of property is calculated by determining what it would cost to replace the property and then adjusting this replacement cost by subtracting an amount that reflects depreciation.
Replacement Cost minus depreciation. The cost of a new item of similar make and model, less depreciation. (See Replacement Cost)
Usually synonymous with market value, appraised value or full cash value. Represents a taxing jurisdiction's estimate of the price a property will bring on an open market before application of assessment ratios or percentages. This value may or may not be indicated on a tax statement. Some taxing jurisdictions have altered the definition to include no extraneous conditions or speculative considerations.
The value of property based on the cost of repairing or replacing it with property of the same kind and quality. Typically, actual cash value equals the current replacement cost minus depreciation (age, condition, length of time in use, and obsolescence.)
The value of property determined by the cost to replace the property, adjusted by subtracting an amount that reflects depreciation.
A method of settling an insurance claim. In which depreciation is subtracted from the original cost of the property.
The value of property as figured by determining what it would cost to replace the property and then adjusting this replacement cost by subtracting an amount that reflects depreciation of the damaged property.
The fair market value of property taking into account factors that might augment or reduce the value of the property in question.
the present-day value of property measured in cash, arrived at by taking REPLACEMENT COST and deducting for DEPRECIATION brought about by physical wear and tear and obsolescence.
In many auto insurance policies, the amount awarded for a total loss. This amount usually equals the cost to replace the damaged vehicle with a vehicle of the same make, model, body type, model year, and equipment with substantially similar mileage and physical condition.
Replacement cost less depreciation, considering the age and condition of your property.
The cost to repair or replace an insured item of property at the time of the loss, less physical depreciation. The value of physcial depreciation is based on the age and condition of the item. Personal property, i.e. contents, is always paid at ACV.
This is a method used to figure the values for your home and belongings when settling a claim. If your policy says it provides for Actual Cash Value settlement, it generally means that your policy will pay the depreciated cost of your property, up to the amount of coverage in your policy. For example, a new TV costs $1,000. Your TV is six years old and has had a lot of use. Your insurance company may determine that your old TV was one-third worn out. They would then subtract an amount from the replacement cost that reflects the years it has been used. In this case, you might receive $600 for the TV.
Cost to repair or replace damaged property with materials of like kind and quality, less depreciation.
The amount of money that a broker or dealer has invested in the purchase and repair of a used vehicle.
How much you could receive for an item if you sold it today. For example, if you paid $14,000 for a car, its actual cash value now might be $11,750. This is determined by the price of a comparable new vehicle minus depreciation, and is the amount your insurance company will pay you if you elect actual cash value coverage.
In the property and casualty insurance industry, actual cash value (ACV) is a method of computing what an insurer will pay an insured, after a loss, for a specific insured item. It is often a less costly method of insuring articles or structures, but it is also less preferred.