Definition : Actual cash value

The cost of replacing a property damaged at the time of the loss compared to another of similar quality. This method takes into account the original price paid, as well as depreciation (the natural decrease in the value of a property over time, due to its wear and tear) and the physical condition of the asset at the time of the loss. In divided co-ownership, this value is used by:

• The syndicate's insurer, when the syndicate decides not to make the repairs or not to rebuild the building;
• The civil liability insurer of a co-owner, when he compensates for damage.