Claims & Disputes
Actual Cash Value (ACV)
The depreciated value of property at the time of loss — what your insurer pays minus age and wear.
Last reviewed: May 2026 · Editorial methodology
Definition
The value of your property at the time of a loss, taking depreciation into account. ACV payouts are lower than replacement cost payouts because they factor in age and wear. For example, a 10-year-old roof worth $5,000 today may have an ACV of $2,500. ACV is the default valuation method for many older home and auto policies; upgrading to Replacement Cost Value typically costs 10–15% more in premium but dramatically increases payouts after a major loss.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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