actual (cash) value

  • The sum of money that the insured property would have brought for cash, at the market price, at the time when, and place where, it was destroyed or damaged by the hazard covered. It is taken to be the actual loss suffered at the time of the loss and not property’s value at the time the policy was issued.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).