Definition of "Actual cash value"
Yadira Bello, Real Estate Agent
Agent Trust Realty
Cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example, a 10-year-old living room sofa will not be replaced at current full value because of a decade of depreciation. The actual cash value clause is common in property insurance contracts. In some instances artistic or antique property may appreciate over time. To receive full coverage such items must be specifically scheduled in a policy.
Have a question or comment? We're here to help.