The Michigan Department of Insurance and Financial Services has released the following bulletin regarding the depreciation of nontangible items.

For Personal Homeowners and Personal Property policies issued or renewed effective July 1, 2025, insurers that wish to depreciate nontangible items as defined herein must do so by a standalone endorsement specifically identifying the nontangible items subject to depreciation, rather than through definitions found in the policy form. Such endorsements must be an optional coverage. Because this endorsement reduces coverage, it must be offered for a commensurate reduction in premium.

See MI Bulletin 2024-26-INS in full. We can help your company stay in compliance by assisting with the required filings for this standalone endorsement. Contact us today.