actual cash value (ACV)
In property and auto physical damage insurance, one of several possible methods
of establishing the value of insured property to calculate the premium and determine
the amount the insurer will pay in the event of loss. ACV is typically calculated
one of three ways: (1) the cost to repair or replace the damaged property, minus
depreciation; (2) the damaged property’s "fair market value;" or (3) using
the “Broad Evidence Rule,” which calls for considering all relevant evidence
of the value of the damaged property. See also
Replacement cost coverage;
Broad
evidence rule.
Links for IRMI Online Subscribers Only:
CAI VIII.E;
CPI V.J;
PRMI 5.G;
10.G