Actual Cash Value (ACV)

Definition#

Actual Cash Value is RCV minus depreciation based on age, wear, and useful life. ACV is the default settlement basis for contents on standard HO-3 policies (unless an RCV endorsement is added) and for roofs in many "ACV roof" markets (TX, OK, CO). The claim-time difference between ACV and RCV can run 30-70% on aged property.