Actual cash value (ACV) refers to the worth assigned to an insured item in the event of a covered loss or damage. It takes into account factors like the item’s original cost, any applicable deductibles or policy limitations, and how it has changed over time.

The ACV represents the current value of the item, which may be less than its original cost due to factors like depreciation, age, or becoming outdated. Understanding ACV is important when determining how much you will be reimbursed or the cost of replacing a damaged or stolen item in an insurance claim.