Key numbers
Homeowners policies accounted for 62% (1,711,094) of U.S. hail loss claims from 2017 to 2019 (National Insurance Crime Bureau, 2017-2019).
| 50% | The U.S. saw 50% more hail claims in 2023 than in any of the previous four years, per Verisk. Source: Verisk (ISO ClaimSearch), 2023 |
|---|---|
| 46% | Catastrophe claims made up 46% of U.S. homeowners claims across all perils in 2023, the highest share in seven years, per LexisNexis. Source: LexisNexis Risk Solutions, 2023 |
| 17% | The average U.S. homeowners insurance premium jumped 17% between 2021 and 2023, per Harvard JCHS. Source: Harvard Joint Center for Housing Studies, 2021-2023 |
General contractor overhead and profit, usually called O&P, is the amount an insurance estimate adds on top of the trade costs to pay a general contractor for running a multi-trade repair: scheduling the trades, pulling permits, supervising quality, carrying insurance and standing behind the work. Insurers typically include it when a claim is complex enough to need a general contractor, most often when several trades are involved, and leave it off simple single-trade jobs. If your storm claim needs roofing plus gutters, paint, siding or windows, it is worth asking whether O&P was considered.
What overhead and profit pays for
On a multi-trade storm repair, the trade line items pay the roofers, painters and gutter installers. They do not pay for:
- coordinating the order of work so paint is not damaged by roofers or gutters go up before fascia is repaired;
- permits and inspections. In Colorado Springs, the Pikes Peak Regional Building Department requires a permit for roof, siding and stucco replacement, and only a homeowner doing the work personally may buy a homeowner permit. In Denver every roof replacement needs a permit;
- supervision and quality checks across trades;
- liability insurance, which Colorado’s roofing contract law requires the contractor to name in the contract (C.R.S. 6-22-103), and workers’ compensation;
- warranty service after the job.
That is the overhead. The profit is what keeps the contractor in business long enough to honor its warranty.
Why it matters to you
When an estimate covers several trades but leaves out O&P, a contractor has three choices: decline the extra trades, do them at a loss, or cut corners somewhere to make up the difference. The third choice is the one homeowners pay for later. A contractor who tells you plainly that the claim does not fund the coordination work is being honest, not difficult. The same logic explains why a very low bid deserves a closer look; see comparing roof bids to your insurance claim.
How to ask about it
- Read the estimate’s summary page for an O&P line. Our guide to reading a claim summary shows where it appears.
- Count the trades. Roofing, gutters, paint, siding, windows, fencing and interior repairs each count.
- Ask the adjuster in writing whether O&P was considered and, if not, the reason and the policy language. The Colorado Division of Insurance encourages homeowners to ask for an itemized explanation of any settlement and the specific policy language behind a dispute.
- If the answer is unreasonable, Colorado bars insurers from unreasonably delaying or denying a covered benefit; see your rights on a Colorado storm claim.
A roofer with a valid contract may discuss the scope with your insurer on your behalf, but may not act as your public adjuster (C.R.S. 6-22-105). Expect your contractor to document the work so nothing gets missed in the scope, and expect the claim to stay yours.
After a bigger loss
On a fire or tornado rebuild, coordination is most of the job. Our disaster recovery guide covers the claim steps for a total loss, and what a roofer should do before your claim covers the questions to ask any contractor first.
Roofing, gutters and paint under one contract
Integrity Roofing and Painting handles roofing, gutters and exterior painting, so a typical hail claim can run under one contract with one point of contact. We are veteran-owned and family-run since 1990, an Owens Corning Platinum Preferred contractor with 650+ Google reviews. Book a free inspection in Colorado Springs at (719) 488-2800, or see our Colorado Springs gutter and painting services.
Sources: PPRBD, Hail & Disaster Information; City and County of Denver, Roofing Guide and Checklist; C.R.S. 6-22-103, 6-22-105, 10-3-1115 (unofficial reproduction); Colorado Division of Insurance, hail consumer advisory (May 22, 2024).
