What Is Actual Cash Value In Homeowners Insurance? 
The actual cash value is defined in your policy . Generally it is the amount necessary to replace the property with materials that are approximately the same is those damaged . This value is set at the time of loss . This is most easily understood if we consider personal property . Consider the effects of fire damage to a couch . The actual cash value of the couch is set at the amount necessary to replace the couch with another couch that is of similar quality and age as the one lost . If the policy has replacement cost coverage for personal property it would replace the couch with one of similar quality but new . Under no circumstances will recovery exceed the values listed in the policy . 