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What Is Actual Cash Value (ACV)?
Actual Cash Value (ACV) is what your property is worth today: its replacement cost minus depreciation for age and wear. An ACV settlement pays that depreciated value, so it is usually less than the cost of a brand-new replacement.
ACV is common for things that lose value over time, such as roofs, vehicles, and contents. It contrasts with replacement cost coverage, which pays to replace the item new without deducting depreciation. Ask your broker which basis your policy uses.
Questions about Actual Cash Value?
Our Ontario brokers can explain how it applies to your policy.
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Reviewed by Roughley Insurance Brokers Ltd. — licensed Ontario insurance brokers since 1945. Last updated May 29, 2026. ← Back to the glossary