Colorado is in the heart of Hail Alley. We’re the state with the second-highest rate of hail-related insurance claims. It’s no wonder we hear so much talk about the roof damage and insurance deductibles in Colorado after a big storm. Unfortunately, there are fraudulent contractors out there who prey on unsuspecting homeowners. They claim to pay the deductible, but the truth is waiving insurance deductibles is illegal in Colorado.
Who is responsible for paying deductibles?
The homeowner is responsible for paying all deductibles. So, agents must warn their clients against fraud. If a roofer offers to waive the deductible and give you a “free roof,” don’t do it! Instead, find a roofer who will work with your insurance.
The Law on Roof Damage and Insurance Deductibles in Colorado
The Consumer Protection/Residential Roofing Bill (C.R.S 6-22-101 to 6-22-105) protects homeowners from scams. Colorado signed the bill into law in 2012, and it prohibits contractors from promising to pay or wave a homeowner’s deductible. Things like coupons, gift certificates, or rebates that match the deductible are illegal under Colorado law. Insurance companies do not have to consider the estimate from any contractor who promises to waive the deductible, and they could sue the contractor. In the end, the roofer could be the one liable for damages.
Beware of “Storm Chasers”
Fraudulent roofing contractors will try to dupe homeowners with offers of free services after a big storm. These storm chases travel to places struck by hail. They go door to door, offering free inspections. They may even claim to be from the insurance agency. Some will do shoddy work then make off with the insurance money. So, insurance agents need to ensure their clients are well informed about these risks. Let your clients know that you’ll never send an inspector without calling first.
Get a Contract
The homeowner and roofing contractor need a signed contract before any work begins. The agreement must clearly state that the roofer cannot wave the insurance deductible in part or whole. It also must outline the scope of work and materials such as:
- Costs for know damages
- Approximate service dates
- Proof of liability coverage
- Cancelation policy
- Contact information
How to Avoid Deductible Scams
Information is key. The more you know about roof damage and insurance deductibles in Colorado, the more likely you are to avoid being tricked. Before hiring a contractor, homeowners should check with the insurance agency so they understand what to expect. In turn, insurance Agents can help clients find a trusted roofing contractor. For example, you can get honest, trustworthy work with Just Roofs and Gutters. We’ll work with homeowners and insurance agents to come to a fair cost. Call 719-374-8304.