Key numbers
State Farm's average hail claim rose by nearly $2,000 from 2021 to 2022, its largest year-over-year increase to date (State Farm (newsroom), 2022).
| More than $3.8 billion | State Farm paid more than $3.8 billion for hail-damaged home repairs and over $1.2 billion for auto repairs in 2024. Source: State Farm (newsroom), 2024 |
|---|---|
| More than $68 billion | Severe convective storms caused more than $68 billion in total U.S. economic damage in 2025. Source: Insurance Information Institute (Triple-I), 2025 |
Getting a cheaper roof bid is legal and often smart. What is not legal is telling your insurance company the roof cost more than it did so you can keep the difference. On most replacement cost policies the insurer holds back part of the money (recoverable depreciation) and pays it only after you send a final invoice showing what the work actually cost. If that invoice is inflated, or the job quietly skipped your deductible, the claim misstates the loss.
How the money is supposed to flow
A typical Colorado or Texas replacement cost claim pays in two parts:
- First check: the replacement cost, minus depreciation, minus your deductible.
- Second check: the held-back depreciation, released after the work is finished and invoiced. The Texas Department of Insurance describes it this way: after the company receives the bill for the finished job, it pays the amount it kept for depreciation.
That second check is the reason “saving” on a cheaper roof rarely puts money in your pocket. The insurer’s total is tied to what the work cost. If the finished roof cost $3,000 less than the estimate, the recoverable depreciation the insurer owes usually shrinks to match. The details live in the loss settlement section of your policy, so read it or ask your adjuster in writing.
Where homeowners cross the line
- Asking for an invoice that does not match the job. Billing for a full tear-off, new decking or ice and water shield that was never installed.
- Accepting a deductible “credit”. Colorado (C.R.S. 6-22-105) and Texas both make it illegal for a roofer to pay, waive or rebate your deductible. Our page on Colorado’s deductible law has the specifics.
- Pocketing held-back money. Collecting recoverable depreciation for work that was not done to the scope the insurer paid for.
If your policy paid everything up front and you are unsure whether you can keep an unspent balance, ask your insurer in writing before you spend it. The answer depends on your policy, and you want it on paper.
Why insurance bids and cash bids differ
A low bid is often low for a reason:
- It leaves out code items. In El Paso County, Pikes Peak Regional Building Department (PPRBD) rules say all existing layers come off before new asphalt shingles go on, and a reroof permit is required.
- It skips the permit or asks you to pull a homeowner permit. PPRBD only lets a homeowner buy a permit when the homeowner does the work.
- It prices a lower-grade shingle than the one on your claim.
- It excludes overhead for coordinating other trades, such as gutters, paint or windows. See general contractor overhead and profit.
Compare bids line by line against the adjuster’s estimate. If an item is on the estimate and missing from a bid, ask why.
How we price an insurance roof
We build our scope from the roof, not from the claim total. If our scope is higher than the adjuster’s, we document the difference with photos so nothing gets missed in the scope; the claim stays between you and your insurer. If our scope is lower, the invoice says so. Recovering the rest of the money then follows the rules in how homeowners lose recoverable depreciation.
Integrity Roofing and Painting is 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 Denver at (303) 209-0152, or read how Colorado Springs storm damage repair works.
Sources: C.R.S. 6-22-105 (unofficial reproduction); Colorado Division of Insurance, hail consumer advisory (May 22, 2024); Texas Department of Insurance, Home insurance guide; TDI, Roofing and insurance: know the law; PPRBD Reroofing Guidelines; PPRBD, Hail & Disaster Information.
