Some policies, he said, provide "actual cash value" coverage for personal property.

HO8, also known as older home insurance, is likely to pay only actual cash value for damages rather than replacement.

This person will have a realistic idea of the actual cash value of the trade.

The least expensive, and least desirable, is actual cash value coverage.

But contents coverage is "actual cash value," which takes depreciation into account.

Actual cash value coverage provides for replacement cost minus depreciation.

Coverage for contents is provided on an "actual cash value" basis, counting depreciation.

The difference between the actual cash value and the replacement cost, he said, will be paid if and when the item is actually replaced.

Cash assets are recorded or "booked" at actual cash value.

Actual cash value coverage pays to replace damaged items after taking depreciation into account.

But most companies limit the amount of depreciation they will absorb to four times the actual cash value of the item.

With actual cash value coverage, the payment would be based on the current value of a 10-year-old set.)

An asset's initial book value is its actual cash value or its acquisition cost.

While most policies provide compensation on an actual cash value basis, more and more individuals are choosing the alternative of replacement cost these days.

Apartment contents can be insured for actual cash value or for replacement value.

Premiums for this type of coverage are based on replacement cost values, and not based on actual cash value.

Instead, the policy will pay the building's actual cash value - the value of the bricks and mortar, minus depreciation, a much lower amount.

It is wise, brokers say, to choose replacement coverage rather than actual cash value, even though premiums might be 10 percent to 15 percent higher.

Otherwise, the replacement cost provision will not apply and your claim will be settled on an actual cash value basis, with depreciation applied.

"Investigate getting replacement-cost coverage instead of actual cash value," he said, because an insurance company will not pay more than the cost of rebuilding a house.

Under most standard homeowner policies, Mr. Schutzman said, personal property is insured only for its actual cash value.

"People who are trying to save money may be tempted to get actual cash value coverage on personal property," Mr. McCabe said.

GAP insurance covers the difference between the actual cash value of a vehicle and the balance still owed on the financing (car loan, lease, etc.).

The maximum amount that can be purchased is $185,000 multiplied by the number of units or the actual cash value of the building, whichever is less.

This may not be the "market value" of the item, and is typically distinguished from the "actual cash value" payment which includes a deduction for depreciation.