Under most standard property policies, actual cash value (ACV) is generally calculated as:

Under most standard property policies

Multiple choice — select the best answer

AReplacement cost with no adjustment
BThe original purchase price of the item
CReplacement cost minus depreciation
DMarket resale value of the property

✓ Correct answer: C. Replacement cost minus depreciation ACV equals the cost to replace the property with new property of like kind and quality, less depreciation for age, wear, and obsolescence. This prevents the insured from profiting from a loss.

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Under most standard property policies, actual cash value (ACV) is generally calculated as:

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