Actual cash value
Actual cash value starts from the replacement value and subtracts the depreciation tied to age and wear. A policy on this basis reimburses what the item is worth on the day of the loss, not the cost of new.
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Actual cash value starts from the replacement value and subtracts the depreciation tied to age and wear. A policy on this basis reimburses what the item is worth on the day of the loss, not the cost of new.