ACV is a payment term used by insurance companies in the process of funding a loss. The ACV acronym stands for Actual Cash Value. For example you purchase a new patio table for $500.00. The table is kept outside and used for 2 years. It has normal wear and tear from use. This table is destroyed when a tree falls on it. If you have an RCV policy the insurance company will write you a check for the tables current actual cash value. Let’s assume that amount is $250.00 because it is 2 years old and is not new. When you purchase a new table for $500.00 the insurance company will send you the depreciated amount, in this case $250.00. If you have a ACV insurance policy, you will not receive any depreciation.