which term describes the cost to replace property minus the deduction for depreciation?
ACV is typically calculated as, the cost to repair or replace the damaged property, minus depreciation; Depreciation â The decrease in the value of property over a period of time, usually as result of age, wear. and tear from use, or economic obsolescence. Actual physical depreciation (wear and tear from use) is. subtracted from the replacement cost of insured property in determining its actual cash value (ACV); Blanket Limit â A single limit of insurance that applies over more than one location or more than one. category of property coverage, or both.