What is the term for the value determined by the replacement cost of like kind and quality at the time of loss, minus depreciation?

The correct term for the value determined by the replacement cost of like kind and quality at the time of loss, minus depreciation, is known as Actual Cash Value. This concept is crucial in understanding insurance payouts. When an insured item suffers damage or loss, Actual Cash Value represents the amount that the insurance company would pay to the policyholder, reflecting the cost required to replace the item with a similar one, while accounting for depreciation due to age, wear, and tear.

This method of valuation is commonly used in property insurance claims to ensure that insured parties receive a fair compensation that mirrors the current value of their assets rather than their original purchase price. Thus, Actual Cash Value serves as a practical approach to calculating the loss in value when a covered event occurs.