Most TDP-1 insurance policies settle losses at which value?

In a TDP-1 insurance policy, losses are typically settled at Actual Cash Value (ACV). This approach takes into account the replacement cost of the item minus depreciation. The rationale behind using ACV is to provide a fair assessment of value at the time of loss, reflecting the current market conditions and the condition of the item prior to the incident.

Settling losses based on ACV helps prevent over-compensation for damaged or lost property and ensures that the insured party is reimbursed for an amount that accurately represents the item's worth at the time of damage. This method is especially relevant in scenarios where depreciation can significantly affect the value, such as with older vehicles or personal property.

Other methods of settlement such as Replacement Cost, Market Value, or Appraised Value take a different approach and would not be applicable under a TDP-1 policy. Replacement Cost looks at the cost to replace the item without depreciation, while Market Value reflects what the item would sell for in the current market. Appraised Value is typically a value assessed by a professional appraiser, which may not account for depreciation or current market trends.