Definition - What does Cash Value mean?
Cash value is the cost of a replacement item at the time of it being replaced after deducting depreciation.
If a person's asset is wrecked by another person, such as during an accident, the person has the right to be recompensed for the loss at a reasonable value that can be seen as being based on the current replacement value. This is important because the cost of replacement can be significantly different depending on the amount of time between the purchase and the point that the item needs replacement.
Justipedia explains Cash Value
Courts will use cash value as a legal standard when determining what monetary damages should be awarded to a plaintiff for the item that they are claiming a loss or damage on.