The Definition of Actual Cash Value

Insurers, working without legislative or judicial direction, created a working definition of the term “actual cash value.” Insurers  recognized that “actual cash value” in a fire insurance policy was  designed to establish a dollar value for items of destroyed property that were not new at the time of loss. Since the insurers had no easy  means to establish the used value of property, they selected the  following as their working definition of “actual cash value”

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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