Mendell Gosnell, CPMPrincipal Broker, Centurion Real Estate Services · Helping Real Estate Investors Build Generational Wealth Through Smart Property Management | Branch Offices in Salem, Corvallis, Eugene and Redmond.

Why Actual Cash Value Pays You Less Than You Think

19 Aug 2026 · 0 min

Watch on YouTube

0:29

In this segment, Mendell Gosnell, CPM explains that many older landlord insurance policies use the Actual Cash Value (ACV) method as the default, which calculates claim payouts as the current replacement cost of the damaged property minus depreciation and the policy deductible. He illustrates the effect with a concrete example: a 15‑year‑old roof that would cost $20,000 to replace today is valued at roughly $8,000 after accounting for depreciation, showing how ACV can result in significantly lower payouts than the full replacement cost.