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What is actual cash value?

Actual Cash Value is a method for valuing property after an insurance loss.

What many people do not realize about actual cash value is that depreciation is taken out of the payment from the insurance company. If you have a kitchen fire and the cabinets in your kitchen are twenty years old. The company is going to pay you for twenty year cabinets. Not what it will cost to replace those cabinets today.

Most property owners prefer to insure their property at replacement cost instead of actual cash value.

Watch this video “What is actual cash value?” for more details:

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This is video #5 of a one hundred insurance video series that The Murray Group is producing to provide insurance consumers with quick, valuable answers to their everyday insurance questions.

If you have additional questions regarding actual cash value or property insurance in general or if you would like to discuss and receive a quote for your property insurance needs use the link below:

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Disclaimer: This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions taken or not taken by the readers based upon such information.

created by Ryan Hanley