A characteristic of "actual cash value" in property insurance is:

The correct answer, "Replacement cost minus depreciation," accurately reflects the definition of "actual cash value" (ACV) in the context of property insurance. Actual cash value represents the amount an insurer will pay to settle a claim for a damaged or destroyed property. It takes into account the current value of the property at the time of loss rather than the original purchase price or the replacement cost.

When calculating actual cash value, the insurer assesses the replacement cost—the amount it would take to replace the damaged item with a new one of like kind and quality—and then subtracts depreciation, which accounts for factors such as age, wear and tear, and obsolescence. This method provides a fair assessment of what the property is worth at the time the loss occurred, ensuring that insured parties receive compensation that reflects the property's current market value, adjusted for depreciation.

The other options do not accurately define actual cash value. For instance, replacement cost plus appreciation does not reflect the current value but rather implies an increase in value, which is not how ACV is assessed. Full market value suggests a valuation based simply on the property's sale price in the current market, excluding depreciation considerations. Lastly, cost minus the deductible refers to the insured's out-of-pocket expense after a deductible