Actual cash value
What a used item is worth today — replacement cost minus depreciation for age and wear. The opposite of replacement cost value.
Actual cash value (ACV) is what your belongings or home are worth in their used condition: the cost to replace the item new, minus depreciation for its age, wear, and remaining useful life. A ten-year-old laptop that cost $1,500 might have an ACV of only a few hundred dollars, because most of its life is already spent. ACV policies have cheaper premiums but pay far less at claim time, which is why most homeowners are better off with [replacement cost value](/glossary/replacement-cost-value) coverage. Even with RCV, insurers usually pay the ACV amount first and release the rest once you replace the item — so understanding the difference tells you what to expect on the first check. A documented [home inventory](/glossary/home-inventory) is how you prove an item's age and value instead of accepting the adjuster's depreciation estimate.