AK | The Alaska Division of Insurance has issued Bulletin B 24-07, issued May 7, 2024. (Update: Withdrawn with Bulletin B25-03)
The Division of Insurance has discovered that some property insurance policies include a definition for “actual cash value” (ACV) that includes subjecting labor to depreciation. When valuing the damaged part of the property at the time of loss, the ACV calculation cannot include the depreciation of labor. As of January 1, 2025, all new or renewing policies that include property coverage cannot include depreciation of labor in the definition of “actual cash value”. Policies that include “depreciation of labor” language must be amended via endorsement.