# Actual cash value

Replacement cost less depreciation — what the item was worth in its used condition at the time of the loss. What governs it, what it becomes over time

> Source: https://servpronorhfremont.com/glossary/acv/
> Last reviewed: 2026-08-22

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# Actual cash value

This applies across all four perils: water, fire and smoke, mold, and biohazard.

 
Replacement cost less depreciation — what the item was worth in its used condition at the time of the loss. The term appears constantly in scopes of work and in policy language, and its technical meaning is narrower than the everyday use of the word.
 

## Also called # Link to this section

 
- ACV

- depreciated value

 

## Where to read more # Link to this section

 
- Water categories and what must be removed

 

 

## Related questions

 - The first hour after any loss
- What your policy covers
- What to photograph and log
- Glossary
 
 
 

## Sources

Every source cited on this page

 - T1 Policy Terms and Coverage — FEMA / NFIP (accessed 2026-08-22)

- T1 State insurance departments — NAIC (accessed 2026-08-22)
 
 
 Written by: PLACEHOLDER — Restoration Reviewer Reviewed by: PLACEHOLDER — Claims Reviewer Last reviewed: 2026-08-22