Actual cash value (ACV) means the in the event of a loss, the insurance company pays the market value of what the item is worth at the time of loss (depreciation only goes down to 50% however.)
For instance, my TV is stolen. I paid $1,000 for it ten years ago, but it's only worth $150 now because it's old. The actual cash value is $150, but depreciation only goes down to 50%, so I would get a check for $500.
With replacement cost, using the example above, the full $1,000 is paid.
With all losses, the insurance company will subtract the deductible from their payment to you.
Blogger -- Caleb Wonn