Hail Claim and Deductible Guide for Colorado Springs Homeowners

What Colorado SB 38 actually says

Senate Bill 38, now Colorado Revised Statutes 6-22-101 through 6-22-105, requires that any residential roofing contract be in writing and include a description of the work, materials, total price, and payment schedule. It also requires the contract to disclose that Colorado law prohibits any agreement to waive, rebate, or pay the homeowner insurance deductible on the roofer behalf.

The law applies to any contractor performing roof repair or replacement on a residential property in Colorado, not just companies based in El Paso County, so it covers both local Colorado Springs roofers and traveling storm-repair crews that come through after a hailstorm.

Why the deductible rule exists

Before SB 38, some roofing contractors would inflate the total invoice, then quietly absorb or rebate the homeowner deductible so it looked like the insurance payout covered the whole job. That practice is insurance fraud in Colorado, whether the homeowner initiated it or the contractor offered it, and CRS 6-22-105 makes it explicit that a contractor cannot advertise or agree to cover the deductible.

If a Colorado Springs roofer offers to waive your deductible, or advertises a rebate equal to your deductible amount, that is a legal red flag, not a good deal. Report the offer to the Colorado Division of Insurance and continue your search for a licensed, PPRBD-registered contractor.

The 72-hour cancellation right

CRS 6-22-104 gives homeowners a specific cancellation right: if a roofing contract is contingent on insurance approval and the insurer denies all or part of the claim, the homeowner has 72 hours after receiving written notice of that denial to cancel the contract in writing, without penalty. This protects homeowners from being locked into a full-price contract if the insurance payout comes in lower than expected.

To use this right, get the denial or partial-denial letter from your insurer in writing, then send your cancellation notice to the contractor in writing within the 72-hour window, ideally by email or certified mail so you have a timestamp.

Working the claim with your insurer

Colorado Springs insurers are used to hail claims, and a typical process starts with an adjuster inspection, followed by a scope of loss (an itemized estimate the insurer will pay against). If your roofer estimate is significantly higher than the adjuster scope, ask your roofer to document the difference item by item and submit a supplement request to the insurer rather than just charging you the gap.

Keep in mind that most Colorado homeowners policies carry either a flat dollar deductible or a percentage-based wind/hail deductible, often 1 to 2 percent of the dwelling coverage limit, which on a $400,000 Colorado Springs home could mean a $4,000 to $8,000 deductible. Confirm your specific deductible type with your agent before assuming a contractor estimate.

Red flags after a Front Range hailstorm

Door-knocking crews that show up within days of a hailstorm, ask to get on your roof before you have called your insurer, and then produce photos of damage are a common pattern in Colorado Springs after major storms. Get your own inspection or at minimum have the crew show you the damage directly rather than relying solely on their photos.

Verify any company claiming to be a local roofer through the PPRBD Contractor and Mechanic Search tool before signing a work authorization form, since a work authorization can sometimes function like a contract even before a final price is agreed.

Typical cost ranges

Ranges are general estimates gathered from homeowner-reported quotes, not an offer or a quote for your project.

Common questions

More on this market

Local cost ranges, seasons, permits and licensing for this city live on the market page.

Sources

• CRS Title 6, Article 22 - Residential Roofing Services
• Colorado Roofing Association - Residential Bill of Rights
• Colorado Division of Insurance
• PPRBD Contractor Search

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