Key numbers
Up to 90% of severe convective storm loss growth since 2000 is due to non-weather factors such as exposure growth and costs, per Gallagher Re data cited by Triple-I (Insurance Information Institute (Triple-I), 2000-2025).
| 42.5% | Wind and hail made up 42.5% of U.S. homeowners insurance losses in 2023, the largest single loss category. Source: Insurance Information Institute (Triple-I), 2023 |
|---|---|
| More than $5.6 billion | State Farm paid more than $5.6 billion in hail claims in 2025, over $600 million more than in 2024. Source: Insurance Information Institute (Triple-I), 2025 |
| 62% | Homeowners policies accounted for 62% (1,711,094) of U.S. hail loss claims from 2017 to 2019. Source: National Insurance Crime Bureau, 2017-2019 |
An insurance deductible is the part of a covered loss you pay yourself before the policy pays the rest. On a roof claim it is subtracted from what the insurer sends you, so it is always your share of the roof, never something a contractor can absorb. If the replacement is approved at $14,000 and your deductible is $1,500, the insurance money for the roof tops out at $12,500 and the other $1,500 is yours to pay to the contractor.
Where the deductible shows up on your claim
Your claim summary (sometimes called a loss statement) usually reads top to bottom like this:
- Replacement cost value (RCV): what the adjuster priced the full repair or replacement at.
- Less depreciation: money held back for the age and wear of the old roof. On a replacement cost policy, this part is usually recoverable once the work is finished. See how homeowners lose recoverable depreciation.
- Less deductible: your share of the loss.
- Net claim or actual cash value payment: the first check.
A worked example on a replacement cost policy:
| Line | Amount |
|---|---|
| Replacement cost of the roof | $14,000 |
| Depreciation held back (recoverable) | $4,000 |
| Deductible | $1,500 |
| First check | $8,500 |
| Second check after the work is invoiced | $4,000 |
| Your share (the deductible) | $1,500 |
The insurer pays $12,500 in total. You pay $1,500. The roof costs $14,000. When a summary says “less deductible applied”, it means the deductible was already taken out of the payment; it is not charged a second time somewhere else.
Flat dollar vs percentage deductibles
You choose the deductible when you buy or renew the policy. A higher deductible lowers the premium and raises what you pay when a storm hits.
- Flat dollar: a fixed amount, such as $1,000 or $2,500, no matter what the house is insured for.
- Percentage: a share of your dwelling coverage. The Colorado Division of Insurance notes that many homeowners policies now carry wind and hail deductibles of 1, 2 or 5 percent of coverage. On a home insured for $500,000, that is $5,000, $10,000 or $25,000.
Percentage wind and hail deductibles are becoming common along the Front Range, and many homeowners only find out after a hailstorm. Our article on the trend toward percentage deductibles in Colorado shows how to find yours and plan for it.
Who pays the deductible
You do. In Colorado, a roofing contractor paid from insurance proceeds may not pay, waive or rebate any part of your deductible, or even advertise that it will (C.R.S. 6-22-105), and the roofing contract itself has to say so (C.R.S. 6-22-103). Texas law also makes it illegal for a contractor to offer to waive, rebate or absorb a homeowner’s deductible, according to the Texas Department of Insurance. The full Colorado rule, including sign credits and gift cards, is on our page about Colorado’s deductible law, Senate Bill 12-038, and the sales pitch to watch for is on free roof scams.
Our policy is simple: every client pays their deductible, and we put that money into the roof system. Where a roof is going to cost more than the claim, we show you the scope line by line so you can see why, instead of hiding the difference.
Plan for it before a storm
- Find your declarations page now and write down both deductibles: all perils, and wind and hail.
- If the wind and hail deductible is a percentage, work out the dollar figure today.
- Ask your agent what a lower deductible would add to the premium. Then compare that against what you could pay out of pocket after a hailstorm.
Get the damage checked first
A free inspection tells you whether storm damage is likely to exceed your deductible before you call your insurer. Integrity Roofing and Painting is veteran-owned and family-run since 1990, an Owens Corning Platinum Preferred contractor with 650+ Google reviews, and we respond the same business day. Book a free inspection in Colorado Springs at (719) 488-2800, Denver at (303) 209-0152 or Austin at (512) 610-5897, or read how storm damage repair in Colorado Springs works.
Sources: Colorado Division of Insurance, hail consumer advisory (May 22, 2024); C.R.S. 6-22-103 and 6-22-105 (unofficial reproduction); Texas Department of Insurance, Roofing and insurance: know the law.
