Actual Cash Value (ACV) is the amount equal to the #replacementcost of an item minus #depreciation. This means that if an item is damaged or stolen, the #insurance payout would be based on the item’s current value, considering its age, condition, and wear and tear.

For example, if you bought a car for $50,000 two years ago and it gets stolen, the insurance company would calculate its current value by subtracting depreciation from the replacement cost. So, if the car’s value has depreciated to $30,000, that’s the amount you would receive, minus any #deductible.

Is there a specific item or situation you’re thinking about in relation to ACV?

Sincerely,

Harpreet Singh, Most lovable ❤️ Insurance Broker in Ontario

Phone – 6476217890

Email – insurancechampion@outlook.com

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