Key numbers
The June 6-7, 2012 Front Range hailstorm caused $321.1 million in insured losses (Denver7 (KMGH), citing Rocky Mountain Insurance Information Association, 2012).
| 51,887 | Denver (51,887) and Colorado Springs (38,044) ranked second and third among U.S. cities for hail loss claims from 2017 to 2019. Source: National Insurance Crime Bureau, 2017-2019 |
|---|---|
| $521 million | State Farm paid $521 million in Colorado hail claims in 2024, the fourth-highest of any state. Source: KDVR (FOX31 Denver), via Yahoo News, citing State Farm, 2024 |
No. In Colorado, a roofing contractor who will be paid from your insurance claim may not pay, waive or rebate any part of your deductible, or advertise or promise to. That rule came from Senate Bill 12-038, signed in 2012, and it now sits in the Colorado Revised Statutes as C.R.S. 6-22-105. It applies to homes in Denver, Colorado Springs and everywhere else in the state.
What the law bans
C.R.S. 6-22-105(1) covers any residential roofing work paid from a property and casualty insurance policy. The contractor cannot:
- pay any part of your deductible;
- waive it, or bill you less than the deductible;
- rebate it after the fact;
- advertise or promise to do any of those things.
In practice, the same rule catches the dressed-up versions: a “sign credit” for a yard sign, an “advertising allowance”, a referral payment, a gift card, or a discount that happens to equal the deductible. If the effect is that you pay less than your deductible on an insurance-funded roof, it is covered by the ban.
What happens if a roofer does it anyway
- The insurer can ignore the estimate. Under 6-22-105(2)(a), the insurance company does not have to consider that contractor’s cost estimate at all.
- The contractor can be sued. Under 6-22-105(2)(b), you or your insurer may sue the contractor for damages caused by the violation.
- Your claim is exposed too. A claim that bills the insurer for a deductible nobody paid is a misstatement of the loss. Read why on is it fraud to get a roof bid lower than your insurance claim.
The contract has to say it in writing
C.R.S. 6-22-103 requires a written roofing contract before work starts. Among other things it must state that if you are using insurance proceeds, the contractor cannot pay, waive, rebate or promise to pay, waive or rebate any part of the deductible. If a contract is missing that sentence, ask why. Our guide to what a Colorado roofing contract must include lists every required term. The same contract must give you 72 hours after signing to cancel with a full refund of the deposit, and the contractor must hold your payments in trust until materials are delivered or most of the work is done.
C.R.S. 6-22-104 adds one more protection: if your insurer denies the claim in whole or in part, you can cancel the roofing contract within 72 hours of that written denial, and the contractor has 10 days to return your payments. Our page on your rights after storm damage in Colorado lists every protection in one place.
Why the law exists
After a big Front Range hailstorm, door-to-door sales crews follow. The fastest way to win a signature is to promise that the homeowner pays nothing. The Colorado Division of Insurance tells homeowners to be careful with any contractor who solicits door to door or by phone after a storm, to check references and to get everything in writing. The deductible rule takes the most common bait off the table. Our article on free roof scams walks through how the pitch sounds.
How to report an offer
- Do not sign. Write down who made the offer and what was said or put in writing.
- Tell your insurance company’s claims or fraud line.
- Call the Colorado Attorney General’s consumer protection line, 1-800-222-4444.
- File a complaint with the Colorado Division of Insurance: 303-894-7490 or DORA_Insurance@state.co.us.
Work with a contractor who follows it
Integrity Roofing and Painting does not pay, waive or rebate deductibles, and we never have. Every client pays their insurance deductible, and our contracts carry the statements Colorado requires. We are veteran-owned and family-run since 1990, an Owens Corning Platinum Preferred contractor with 650+ Google reviews. Book a free inspection in Denver at (303) 209-0152 or Colorado Springs at (719) 488-2800, or see how Denver storm damage repair works with your claim.
Sources: C.R.S. 6-22-102, 6-22-103, 6-22-104, 6-22-105 (unofficial reproduction; Article 22 was added by SB 12-038 in 2012); Colorado Division of Insurance, hail consumer advisory (May 22, 2024); Stop Fraud Colorado, Colorado Attorney General.
