Actual cash value
A valuation of damaged property that generally reflects its value at the time of loss, often considering depreciation.
Also called
ACV · cash value
What it means
A current-value approach that may be based on replacement cost less depreciation, market value or other relevant evidence.
Example
An older television may be valued below the cost of a new equivalent because age and condition are considered.
Canada context
Insurance wording and mandatory coverage can differ by province, insurer and policy form. Read the declarations, endorsements and full policy wording that apply to you.
Common confusion
Actual cash value is not the original purchase price and is usually lower than replacement cost for depreciating property.
Important
This plain-language explanation is general information, not legal advice or a substitute for your policy wording. Ask a licensed insurance professional about your situation.
Last reviewed August 17, 2026
Sources
General information only. Coverage and terminology can differ by province, insurer, and policy wording. Consult your policy and a licensed insurance professional.