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Actual Cash Value

   Also found in: Acronyms, Wikipedia 0.02 sec.

The fair or reasonable cash price for which a property could be sold in the market in the ordinary course of business, and not at forced sale. The price it will bring in a fair market after reasonable efforts to find a purchaser who will give the highest price. What property is worth in money, allowing for depreciation. Ordinarily, actual cash value, fair market value, and market value are synonymous terms.



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It differs from actual cash value, which pays damages equal to the replacement value of damaged property, minus depreciation.
* Consider insuring only key buildings for replacement cost, and cover other buildings on an actual cash value, or depreciated value basis.
It is also important to determine whether an insurance policy provides replacement cost or actual cash value coverage, Moraga said.
 
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