What does actual cash value policy mean?

actual cash value policy meaning in Law Dictionary

Homeowners insurance coverage that enables insurer to subtract depreciation from replacement cots when spending a claim. Refer to marketplace value policy.

actual cash value policy meaning in Business Dictionary

particular home owners insurance coverage under that the insurer deducts accumulated depreciation through the replacement cost of the damaged or destroyed asset before spending the claim. Just a 'replacement expense plan' pays the total replacement price. See additionally market price plan.