What is Actual cash value (ACV)?
Definition. The value of damaged property at the time of loss, usually calculated as replacement cost minus depreciation. On a roof claim with replacement cost coverage, ACV is normally the first payment you receive, before the work is done. Some policies settle roofs at ACV permanently, so there is no second payment. See ACV vs RCV on roof claims.
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Related questions
- Do insurance companies pay the depreciation value on a roof claim?
- How is an actual cash value roof claim paid?
- How do you tell if your roof insurance is actual cash value or replacement cost?
- What does actual cash value mean for a roof on homeowners insurance?
- What is an actual cash value roof endorsement?
More claim terms
Loss of use (Coverage D) · Matching · Cosmetic damage exclusion · Public adjuster · Proof of loss · Overhead and profit (O&P) · Dwelling coverage (Coverage A) · Line item