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Insurance Glossary

Actual Cash Value

Property

Definition

The repayment value for indemnification due to loss or damage of property; in most cases it is replacement cost minus depreciation.

Definición en Español

ES

Valor Real en Efectivo

El valor de reembolso por indemnización debido a pérdida o daño de propiedad; en la mayoría de los casos es el costo de reemplazo menos la depreciación.

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Related Terms

Replacement Cost
The cost to replace damaged or destroyed property with new property of similar kind and quality, without deduction for depreciation.
Depreciation
The decrease in value of property over time due to wear, tear, age, or obsolescence.
Indemnity
Compensation for loss or damage, restoring the insured to their financial position before the loss occurred.
Homeowners Insurance
Insurance coverage that protects your home and personal property against damage, theft, and liability claims.
Renters Insurance
Insurance coverage for tenants that protects personal property and provides liability coverage, but does not cover the building structure.
Jewelry Insurance
Specialized insurance coverage for valuable jewelry, watches, and gemstones that provides protection against loss, theft, damage, and mysterious disappearance. Often purchased as a scheduled personal property endorsement to homeowners or renters insurance.
Cash Value
The savings component of a permanent life insurance policy that accumulates over time and can be borrowed against or withdrawn.
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