Will a Roofing Company Pay My Insurance Deductible? (Colorado Springs)

Key Takeaways

• In Colorado, it is illegal for a roofing company to pay, waive, rebate, or absorb your insurance deductible. The law is HB 12-1183.
• "We'll cover your deductible" is the single biggest red flag for insurance fraud in Colorado Springs after a hailstorm.
• Your deductible is your contractual share of the claim. Skipping it is fraud against your insurance carrier.
• The real path to a fair hail claim does not involve waiving anything.

After a serious hailstorm in Colorado Springs, you will get knocks on the door. Some of those knocks will come from roofers offering to "take care of your deductible" so the new roof costs you nothing. It sounds great. It is also illegal in Colorado, and signing onto it can drag you into an insurance fraud investigation.

If you have heard the pitch and want to know whether it is legitimate, the short answer is no. Here is what the law actually says and what you should be doing instead.

What does Colorado law say about deductibles?

Colorado House Bill 12-1183 went into effect in 2012 specifically because of post-hailstorm fraud across the Front Range. The law makes it a violation for a residential roofing contractor to:

• Pay, waive, or rebate any portion of an insurance deductible
• Offer to do so as an inducement to sign a contract
• Promise any benefit that has the effect of reducing or eliminating the deductible

The contract you sign for hail damage work in Colorado must also include a statement that the property owner has the right to rescind the contract within 72 hours if the insurance claim is denied in whole or in part. Any roofer working in Colorado Springs should know this. The ones who do not, or who pretend it does not apply, are the ones to avoid.

Why does the law exist?

Insurance deductibles exist for a reason. Your deductible is your share of the claim cost, and it is built into the premium math your insurer uses. When a roofer waives the deductible, two things happen.

First, the roofer makes up the loss somewhere, usually by inflating the rest of the claim or cutting corners on the install. Insurance companies catch this. The Colorado Division of Insurance has flagged it explicitly in consumer guidance.

Second, you, as the homeowner, are signing a claim form attesting that you paid the deductible. If you did not actually pay it, you have committed insurance fraud against your own carrier. The roofer may get sanctioned, but you can have a claim denied or be dropped from coverage.

After the big El Paso County hailstorms of 2023 and 2024, both Colorado Springs Police and several major carriers opened investigations into deductible-waiver practices. This is not theoretical risk.

What does it actually sound like in real life?

The pitch in Colorado Springs neighborhoods like Briargate, Stetson Hills, Cordera, Wolf Ranch, Falcon, and the older parts of the Old North End usually shows up within 48 hours of a major storm. It sounds like:

• "We'll just bake your deductible into the claim, you pay nothing out of pocket."
• "We give a $1,000 inspection discount that conveniently matches your deductible."
• "We give a rebate at the end that covers what you put down."
• "Our insurance specialist handles your deductible for you."

All four of those are HB 12-1183 violations. If a contractor says any version of this, end the conversation and call someone else.

What should a legitimate hail claim look like?

The actual process is straightforward and looks nothing like a waiver scheme.

1. Storm hits. You notice hail damage or your neighbors are getting roofs done.
2. Get a professional inspection. A local Colorado Springs roofer documents the damage with photos and a written report.
3. File a claim with your insurance carrier. Your insurer sends an adjuster, usually within one to two weeks.
4. Have your contractor present at the adjuster's inspection. This is your right, and it catches damage the adjuster might miss. We cover this in more detail in our hail damage guide.
5. Insurance pays out based on the agreed scope, minus your deductible. That deductible amount is your share, and you pay it to the roofer along with any non-covered upgrades you choose.
6. Roof gets installed. You sign off when the work is complete.

Your deductible is typically 1 to 2 percent of your home's insured value in Colorado, which on a $500,000 home is somewhere around $5,000 to $10,000. That is real money, but it is a fraction of the $20,000 to $35,000 a full hail roof replacement costs in Colorado Springs today. Insurance is doing its job.

How do I spot a storm chaser vs a legitimate Colorado Springs roofer?

Storm chaser red flag	What honest roofers do
Offers to "cover" your deductible	Quotes the deductible as your share, period
High-pressure same-day contract	Gives you the 72-hour rescission notice in writing
Out-of-state license plate, P.O. box address	Has a verifiable Colorado Springs business address
Demands large deposit up front	Bills against the insurance claim disbursement
No physical office, just a phone	Office, supplier accounts, references in El Paso County
Cannot produce Colorado liability insurance	Provides COI naming you as additional insured on request

The Colorado Roofing Association maintains a list of legitimate member contractors and publishes consumer guidance for storm season. That is a reasonable starting point if you do not have referrals.

What if I already signed with someone who promised to waive my deductible?

You almost certainly have a way out. The contract must, by law, include the 72-hour rescission language tied to the insurance claim status, and many of these contracts are unenforceable for other reasons (no license, no proper disclosures, missing signatures). Talk to the Colorado Division of Insurance or a real estate attorney before paying anything. Then get a second opinion on the actual damage and the actual scope.

Bottom line

If a roofer in Colorado Springs offers to cover your deductible, walk away. The honest answer is that your deductible is your share of the claim and an honest contractor will not pretend otherwise. The math still works in your favor, the work still gets done, and you do not end up on the wrong side of an insurance fraud investigation.

Need a second opinion on a hail estimate or want a clean, by-the-book inspection? Call (719) 657-6893 or book online. Free, written, and not from a guy who knocked on your door.