Actual Cash Value

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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References in periodicals archive

If your policy pays actual cash value, the company will pay the cost to repair or rebuild your house minus depreciation.

What you can do to protect your estate in case of disaster

The policy does not define "actual cash value" or depreciation, or describe the methods employed to calculate ACV.

Why Labor Must Be Depreciated to Find ACV: Materials and Labor Depreciate to Reach Actual Cash Value

ACTUAL CASH VALUE: If the vessel is a total loss, the owner receives the actual cash value of the vessel at the time of loss, which may be far less than the amount the vessel was purchased for, an amount representing instead the current market value of the vessel.

What you can't see ..

Actual cash value (ACV) is the current depreciated cost.

Policy review: is your community covered?

One tip for building owners is to discern the difference between actual cash value coverage versus replacement value.

Picky business as insurers compete in marketplace

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