The Roof Replacement Insurance Process

Beware of Roofing Companies Advertising “No Deductible” Offers

Due to the volume of storm damage claims, some roofing companies may promise to waive or pay your deductible. However, this practice is illegal in Colorado.

Colorado Senate Bill 12-038, Section 1, Article 22
clearly states:
“Roofing contractors cannot pay, waive, or rebate all or part of an insurance deductible applicable to a roofing claim.” In other words, you cannot profit from your insurance claim. All loss statements come with a disclaimer informing
homeowners about insurance fraud, and paying or waiving a deductible falls under this category.

If you’re unable to pay your deductible immediately, Bold Brothers Roofing Co. offers in-house payment plans to assist our clients. Please feel free to discuss this option with your Project Manager for more details.

https://leg.colorado.gov/sites/default/files/images/olls/2012a_sl_267.pdf

Understand the Importance of Complying with Colorado Law

Colorado law prohibits profiting from an insurance claim, and committing insurance fraud is a Class 3 felony punishable by up to 10 years in prison, with significant fines. Make sure you work with a trusted, reputable roofing contractor who adheres to state regulations and keeps your interests at heart.

At Bold Brothers Roofing Co., we’re committed to honesty, transparency, and providing you with the highest quality service for your roof replacement needs. 

Avoid Choosing the Lowest Bid—Your Only Out-of-Pocket Expense Is the Deductible.

Your insurance company covers everything beyond your deductible and any optional upgrades you choose. Opting for a cheaper bid won’t reduce your deductible. The best way to maximize your return on investment is by hiring a reliable contractor who uses high-quality materials and does the job right the first time. Choosing the lowest bid can often lead to more time and money spent on future repairs. Your roof is a long-term investment—ensure you get the best quality roof that adds value to your home.

What is “Recoverable Depreciation”, “ACV” & “RCV”?

Definition of Recoverable Depreciation:

Recoverable depreciation is the difference between the replacement cost of an item and its actual cash value (ACV), which accounts for wear and tear or depreciation over time. In certain insurance policies, this depreciation is recoverable once the item is repaired or replaced and proof is provided to the insurance company.

Example: Roof Replacement with Recoverable Depreciation

A homeowner has an older roof that is damaged in a hailstorm. The insurance company inspects the roof and determines it needs to be replaced. Their policy covers the replacement cost but includes recoverable depreciation.

• Replacement Cost Value (RCV): $15,000 (the cost to replace the roof with a new one)
• Actual Cash Value (ACV): $9,000 (because the roof was 15 years old, the insurance company depreciates it based on its age and condition)
• Recoverable Depreciation: $6,000 (the amount the insurance company withholds until the work is completed)

Initially, the insurance company pays $9,000 (ACV) to get the roof replacement started. Once the homeowner hires a contractor and the roof is replaced, the homeowner submits proof (such as invoices and photos). The insurance company then releases the additional $6,000 (recoverable depreciation) to cover the full $15,000 replacement cost.

Without the recoverable depreciation, the homeowner would have to pay the difference out of pocket, but since the policy includes this, the insurance company covers the full replacement cost, as long as the roof is replaced.

Will Filing a Roof Replacement Claim Increase My Insurance Rates?

If your roof was damaged by a storm, the short answer is no.
Filing a claim for storm damage won’t cause your homeowner’s insurance rates to increase because this type of event is considered uncontrollable and natural. 

Increased rates in your area are determined by zip codes that experience statistically higher levels of storm damage, meaning your rates could go up whether you file a claim or not.

Questions to Ask Yourself:

• Do you know what your insurance should cover for your roof damage?
• Are you confident the insurance adjuster offered “Fair Market Value” for your area?
• Are you aware of local building codes related to roof replacement?
• Did the insurance adjuster account for all costs needed to bring your home up to current codes?
• Are you certain the adjuster didn’t miss any damage or required repairs?

The Insurance Adjuster Meeting and Inspection

When you file a claim, your insurance company will schedule an appointment with an adjuster, typically between 8 AM and 6 PM, Monday through Saturday. During this appointment, the adjuster will inspect your property, including the roof and other areas affected by the storm. They will measure out a “test square” (10 feet by 10 feet) on various slopes of your roof. If they find enough evidence of damage (such as bruises or broken shingles) within those squares, the insurance company will approve a roof replacement. The adjuster will also inspect additional roofing components, and extra funds may be provided if those areas are also damaged.

What Determines the Payment Amount for My Roof?

Your insurance company follows a detailed price list to ensure that the amount paid for your roof replacement reflects fair market value. They will only cover the actual costs for repairs that align with their established pricing—regardless of any bids you receive. If any items are missing from the Loss Statement, we will work directly with your insurance company to secure proper supplementation and update the costs accordingly.

Now, ask yourself: What benefit does the insurance company offer you for finding the lowest price for them? Will your premiums decrease if you choose a cheaper bid? The answer to both is no. Your insurance company will pay the contractor the fair market price, so searching for the lowest bid only saves the insurance company money while potentially sacrificing the quality your home deserves.

Who Should You Hire to Replace Your Roof?

This is one of the most important decisions you will make during the process. Our best advice is to choose a contractor you feel comfortable with, has a strong reputation, and can be trusted. You should never feel rushed or pressured into making a decision. Look for a contractor who does not require upfront payments, is properly licensed, and fully insured.

Be cautious of out-of-state contractors who may flood the area after major hailstorms but lack local knowledge and experience with building codes. Choosing the right contractor ensures high-quality materials are used, and your home remains protected from the elements.

Hiring Bold Brothers Roofing Co. guarantees expert service for you and your insurance company. With our extensive experience and deep understanding of the roofing process, we work on your behalf to deliver the best results for your home.