Actual Cash Value
- A method for calculating the value of insured property. Actual cash value is the replacement cost of the insured property with depreciation taken into account. Not to be confused with "book value," which uses the initial purchase price of the property in the calculation instead of the current replacement cost.
valuation, assessment, market value
Related Terms and Acronyms
- Adjusted Basis — Definition,
- The amount you use to determine your profit or loss from a sale or exchange of property.
- Adjusted Cost Basis — Definition,
- The amount paid for an item, plus the amount paid for improvements, minus losses and depreciation. When the owner sells the item, the difference between the sales price and the adjusted cost basis is the profit or loss.
- Extended Replacement Cost — Definition,
- A replacement cost for an asset that exceeds that of the actual cash value of the asset.
- Fair Market Value (FMV) — Acronym, Very Important,
- The highest price that a buyer would pay for a property and the lowest price a seller is willing to accept.
- Full Market Value — Definition,
- In reference to property taxes, usually refers to the tax rate applied to 100 percent of the property's value. Also full cash value.
- Gap Insurance — Definition,
- A type of insurance offered to auto lease customers. This type of insurance covers the difference in value between a vehicle's book value and the amount remaining on a vehicles financing or lease, if such a difference exists.
- Illiquid Asset — Definition,
- An asset that cannot be sold easily or in a timely manner for its full value.
- Insurable Value — Definition,
- The total amount that an asset can be insured for.
- Insured Value — Definition,
- What an insurer will pay to replace an insured asset.
- Replacement Cost — Definition,
- The amount one would have to pay to rebuild and refurnish with materials and items of similar value. The cost of replacing an asset with one of equal value without taking depreciation into account.
- Residual Value — Definition,
- The amount agreed upon to represent the value of the car at the end of a lease.