The Michigan Department of Insurance and Financial Services (DIFS) published a bulletin on their view of insurers including the depreciation of nontangible items in their policies. The Department has learned that some property insurance policies include depreciation of labor and other nontangible items in their definition of actual cash value. 

As we know in insurance, ACV typically means replacement cost minus depreciation, and it generally would apply only to physical or tangible items. Labor and other intangible items do not deteriorate, age, or otherwise decline in value, even if the insured physical property does.