How the Roof Insurance Deductible Works in Colorado
Your deductible is the part of a roof claim you pay out of pocket before your insurer pays the rest. Simple enough on paper. In Colorado, two things trip homeowners up: many policies now use a percentage based wind and hail deductible that is far larger than people expect, and a state law makes it illegal for any roofer to cover that deductible for you. Understanding both before a storm saves you money and keeps you away from a scam.
We are Patriot Roofing, a locally owned company in Pueblo, and we deal with hail claims across Southern Colorado and the Front Range every week. Here is how the deductible actually works here. This is general information, not legal or insurance advice, so confirm your own policy details with your carrier or the Colorado Division of Insurance.
Flat vs percentage deductibles
A flat deductible is a fixed dollar amount, often 1,000 dollars to 2,500 dollars. If your roof claim is covered, you pay that set amount and your insurer covers the rest, subject to how your policy settles.
A percentage wind and hail deductible is different, and it is now common in Colorado because of how often it hails here. Instead of a fixed dollar figure, it is a percentage of your dwelling coverage, usually 1 percent to 5 percent. The important detail people miss is that the percentage is based on your home’s insured value, not on the size of the claim.
Here is what that means in real numbers. Say your home is insured for 400,000 dollars and your policy has a 2 percent wind and hail deductible. Your out of pocket deductible on a hail claim is 8,000 dollars, not a few hundred. On a 5 percent deductible, it would be 20,000 dollars. Many homeowners do not discover this until they file a claim and see the math, which is exactly the wrong time to learn it.
Check your declarations page today. If it lists a separate wind and hail or windstorm deductible as a percentage, do the multiplication now so you know your real number.
How the deductible interacts with ACV and RCV
Your deductible does not sit by itself. It works together with whether your policy pays Replacement Cost Value or Actual Cash Value, and that combination decides your final check.
On an RCV policy, the insurer typically pays the actual cash value first, which is the replacement cost minus depreciation, and your deductible comes out of that first payment. After the roof is completed and invoiced, they release the recoverable depreciation. So the deductible is subtracted once, from the money you receive up front.
On an ACV policy, the insurer pays only the depreciated value of the roof minus your deductible, and there is no second payment for depreciation. Between an older roof and a percentage deductible, the out of pocket gap on an ACV policy can be large. For the full breakdown of these two settlement types, see our companion guide, Does Homeowners Insurance Cover Roof Replacement in Colorado. The National Association of Insurance Commissioners also explains the difference in plain language.
The law: a roofer cannot pay your deductible in Colorado
After a hailstorm, you will hear it: “We’ll cover your deductible” or “We’ll eat the deductible so the roof costs you nothing.” In Colorado, that offer is illegal, and it is a bright red flag.
Under the state’s residential roofing law, Senate Bill 38, codified at C.R.S. sections 6-22-101 to 6-22-105, a roofing contractor cannot pay, waive, rebate, or even offer or promise to pay, waive, or rebate any part of your insurance deductible when the work is paid through a property insurance claim. A contractor who offers to is breaking the law, and treating your deductible as optional is a form of insurance fraud that puts you at risk too.
There is a practical reason the law exists. When a roofer waives your deductible, they usually make it back by inflating the scope, cutting corners on materials, or billing the insurer for work they do not do. The homeowner ends up with a worse roof and a paper trail that can come back on them.
Your rights under SB 38
The same law that bans deductible waiving also gives you protections worth knowing. On a residential roofing job paid through insurance, Colorado requires a written, signed contract, and it must spell out several things, including:
- A clear scope of work, materials, and an estimated price.
- The contractor’s cancellation and refund policy, with your right to rescind the contract within 72 hours of signing and get any deposit back.
- A statement that if your insurer denies the claim in whole or in part, you can rescind the contract within 72 hours of getting that notice. If the insurer later revises the settlement, that 72 hour window can restart.
- A statement that any advance payment is held in trust until materials are delivered or most of the work is done.
- A statement that the contractor cannot pay, waive, or rebate your deductible.
A reputable local contractor will hand you a contract like this without being asked. If a roofer will not put the scope, price, and these terms in writing, walk away.
Planning for the deductible
Since the deductible is yours to pay, plan for it. Get a free inspection and a written estimate first, compare the repair cost to your deductible, and only file when the covered damage clearly exceeds it. Our hail damage identification guide helps you tell real storm damage from normal wear before you decide. For the full filing process, see our step by step guide, How to File a Hail Damage Insurance Claim in Colorado. If a covered replacement is needed and the deductible is a stretch, we offer flexible roof financing with a quick digital application so cost does not force you to delay a needed repair. You can also read how our insurance claim assistance and storm damage work fits together with the claim.
Frequently asked questions
How does a roof insurance deductible work in Colorado?
The deductible is the amount you pay out of pocket on a covered claim before your insurer pays the rest. In Colorado, roof claims often fall under a separate wind and hail deductible, which may be a percentage of your home’s insured value rather than a flat dollar amount.
What is a percentage wind and hail deductible?
It is a deductible calculated as a percentage of your dwelling coverage, usually 1 percent to 5 percent, that applies to wind and hail claims. On a 400,000 dollar home, a 2 percent deductible means 8,000 dollars out of pocket before the policy pays.
Is a percentage deductible based on the claim or the home value?
On the home value. The percentage applies to your dwelling coverage limit, not the size of the claim, which is why the dollar amount is often much larger than people expect. Multiply your dwelling limit by the percentage to find your real deductible.
How does the deductible work with RCV and ACV?
On an RCV policy, the deductible comes out of the first actual cash value payment, and recoverable depreciation is released after the work is done. On an ACV policy, the insurer pays the depreciated value minus the deductible, with no second payment.
Can a roofing contractor pay my deductible in Colorado?
No. Under Colorado Senate Bill 38, a contractor cannot pay, waive, rebate, or offer to pay, waive, or rebate your insurance deductible on work paid through a property claim. Any such offer is illegal and a warning sign of a dishonest contractor.
Why is it illegal for a roofer to waive my deductible?
Because it usually leads to inflated scopes, cut corners, or billing insurers for work not performed, which raises costs for everyone and can expose the homeowner to fraud. The law protects consumers and keeps claims honest.
What is SB 38 in Colorado?
Senate Bill 38, codified at C.R.S. sections 6-22-101 to 6-22-105, is Colorado’s residential roofing law. It requires a written contract with specific terms, gives homeowners a 72 hour right to rescind, requires deposits to be held in trust, and bans contractors from covering your deductible.
Do I have a right to cancel a roofing contract in Colorado?
Yes. SB 38 gives you the right to rescind a residential roofing contract within 72 hours of signing and get any deposit back. If your insurer denies the claim in whole or in part, you get another 72 hour window to rescind after you receive that notice.
Should I file a claim if the repair is close to my deductible?
Usually not. If the covered damage does not clearly exceed your deductible, filing gains you little and adds a claim to your history. Get a free inspection and a written estimate first, then compare.
Can I have more than one deductible on a roof claim?
Your policy generally applies one deductible per claim, but that may be your standard deductible or a separate wind and hail deductible depending on the cause of loss. Check your declarations page to see which applies to storm damage.
Does a higher deductible lower my premium?
Often, yes. Choosing a higher deductible usually lowers your premium, but it also means more out of pocket at claim time. In hail country, weigh that trade off carefully and know the real dollar figure of a percentage deductible before you choose it.
How can I afford my deductible on a roof replacement?
Plan ahead and get a written estimate so you know the number. If a covered replacement is needed and the deductible is a stretch, financing can spread the cost so you are not forced to delay the work. Ask your contractor what options are available.
Request a Free Roof Assessment
Before you write a check for a deductible, make sure you know your real number and that the damage justifies a claim. We will inspect the roof for free, give you a written estimate, and walk you through the deductible and financing options, with no pressure and no obligation.
Request a Free Roof Assessment today by calling Patriot Roofing at (719) 716-ROOF, or reach us through our contact page. If your claim came back denied or short, see our companion guide, What to Do If Your Insurance Denies a Hail Damage Claim in Colorado. Your Roof, Our Honor.