Insurance Fraud and Choosing a Roofer in Colorado Springs


Workman installing shingles on the roof

One of the most common questions homeowners ask when it comes time to file an insurance claim is whether we can “waive” the deductible. In short, no.

Senate bill 12-038 “prohibit[s] roofing contractors from paying, waiving, rebating, or promising to pay, waive, or rebate all or part of any insurance deductible applicable to an insurance claim made to the property owner’s property and casualty insurer for payment for roofing work on the residential property covered by a property and casualty insurance policy.”

As most homeowners have Replacement Cost Value (RCV) provisions in their insurance policies, insurers have limited their exposure to RCV insurance claims by breaking down payments into multiple parts.  Instead of receiving a lump-sum payment for work to be completed, funds for a roof replacement can come in as many as 4 separate checks and will often bear the name of the mortgagee of the property as a cosigner.  The only way to get all the money from an insurance claim is for a licensed contractor to actually bill the insurance company and the mortgage company (if there is a mortgage on the property) for the completed work.  If the invoice amount is lower than the insurance estimate (because the contractor cut corners or used lesser materials), the insurer will provide less money to match the invoice (less deductible).  If the contractor invoices the insurance company for the full estimated price, but charges the homeowner less than what was invoiced to the insurer, that is insurance fraud.

Furthermore, a contractor that is waiving $1,000+ is likely using lesser materials. Be sure to ask your roofer about the brand of shingles they will be using, whether they will be using synthetic underlayment, and if they will be replacing the roofing accessories on your roof. At Storm Guard, we use Owens Corning products. As one of the few Platinum Preferred Contractors in the state, we back up our work with an industry leading warranty plan.

Finally, do your research. Does your contractor have an A+ rating with the BBB? Have you looked at their reviews? For more, take a look at our other thoughts on the industry on our blog.



Source link