What data may be used to determine a property’s actual cash value?

Replacement cost minus depreciation is used to determine a property’s actual cash value because it reflects the current worth of the property in the context of insurance claims and assessments. This method considers what it would cost to replace the property with a similar one at present-day prices while accounting for wear and tear through depreciation. The focus on replacement cost ensures that the valuation is based on the cost to bring the structure back to its original condition rather than its original construction cost, which may not accurately represent the property's current value.

This approach provides a more precise estimation of actual cash value, vital for both property owners and insurers, especially in the context of floodplain management and disaster recovery. By knowing how much a property is worth after depreciation, stakeholders can make informed decisions regarding insurance coverage, property sales, or recovery efforts following a flood event.