What formula calculates the amount actually paid in an insurance claim?

The amount actually paid in an insurance claim is determined by the Actual Cash Value (ACV). The formula for ACV is typically calculated as Replacement Cost minus Depreciation. This method reflects the item's current market value at the time of loss, considering wear and tear over time.

Loss Adjustment refers to the process an insurance company undergoes to determine the amount of loss and the settlement process, but it does not specify how the payment amount itself is calculated.

Coinsurance Calculation is related to the proportion of coverage a policyholder must maintain to receive full benefits during a claim. If the insured does not meet this percentage, they may only collect a portion of the loss. This calculation affects payout but does not directly determine the claim amount.

Deductible Assessment involves subtracting a specified amount from the claim payout based on the terms of the policy. While it affects the final amount received by the policyholder after a loss, it does not represent the initial calculation of the claim payment.

Thus, the correct formula for determining the amount actually paid in an insurance claim is based on Actual Cash Value, which takes into account both the current value of the property and any relevant deductions such as depreciation.