Actual Cash value (ACV) is what the insurance company says the value of an object is; they determine this by looking at the current cost and the age of a widget; the current cost is depreciated to the ACV depending upon the age. Different catagories of widgets (clothes, computers, etc.) have different depreciation tables. The only two I remember being told about were clothes which depreciated at 30% the first year and 10% every year after that and computers which depreciated at 20% per year.