On November 8, 2024, the Michigan Department of Insurance and Financial Services (DIFS) issued Bulletin 2024-26-INS, which supersedes Bulletin 2024-18-INS, regarding the depreciation of labor and other nontangible items that may be included in some insurance policies' definition of Actual Cash Value (ACV).

The bulletin clarifies that insurers who wish to depreciate labor or other nontangible items must do so by a standalone endorsement that specifically states the nontangible items subject to depreciation. These endorsements must be an optional coverage that is available for a reduced premium. These requirements will apply to personal lines homeowners or dwelling policies issued or renewed effective on or after July 1, 2025.

Please see Bulletin 2024-26-INS for more information. For any questions regarding the bulletin, please contact the Office of Insurance Rates and Forms at DIFS-OIRF@michigan.gov.