The 8 Essential Things You Need to Know About Your Insurance Deductible

On June 6, 2012, Colorado and Governor Hickenlooper adopted Colorado Senate Bill 38 (SB 38). It states that a roof deductible paid by a roofing contractor results in insurance fraud.

As a homeowner, it might make sense to allow your roofing contractor to cover your insurance policy deductible towards your new roof replacement. Financially, it seems as though it would benefit a property owner to work with a Denver roofing company that is willing to absorb the insurance deductible. According to Senate Bill 38, that is now illegal and is viewed as insurance fraud.

Only pay your insurance deductible. There are no hidden costs when you work with Metro City Roofing.

8 Key Details About Senate Bill 38

According to this enforceable law, the following are eight key points that will impact you as a property owner concerning your new roof replacement insurance deductible.

Senate Bill 38 makes any of these offenses punishable by law:

1. Prohibits a Colorado roofing company from paying an insurance policy deductible
2. Prohibits a roofing contractor from waiving an insurance policy deductible
3. Prohibits a roofing contractor from contributing any monies or actions toward the insurance policy deductible
4. Will not allow a roofing contractor to provide a sign credit for installing a yard sign
5. Makes it illegal for a roofer to give a rebate while working on an insurance claim
6. Makes it illegal for a Colorado roofing company to give merchandise construed to be payment or toward a deductible
7. Doesn’t allow a roofer to give a gift certificate related to a roof insurance policy claim toward the insurance deductible
8. Has deemed that a roofer’s coupon that’s provided in conjunction with a roof insurance claim will be construed as insurance fraud

Should you have any questions and believe you may have roof damage from a hailstorm or windstorm, contact your insurance company and ask questions about your homeowners insurance policy and insurance deductible before filing an insurance claim.

In addition to your responsibility to pay your insurance deductible, you should ask your insurance company whether your insurance policy is a replacement cost value policy (RCV) or actual cash value (ACV). Should you have an ACV policy, you will incur additional expenses, as depreciation is deducted from your replacement cost.