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Colorado Homeowner Resource

Your insurance
policy isn't
what you think.

Colorado homeowners file more roof insurance claims than almost anywhere in the country. Most go in unprepared. Here's what you need to know before you make that call.

RCV vs. ACV: Know Which One You Have

This single detail determines how much your insurer pays — and how much comes out of your pocket.

Most Colorado homeowners assume their roof is covered at full replacement cost. Many are wrong. Insurers have been quietly shifting older roofs to Actual Cash Value coverage — often at renewal, often buried in the policy language. Pull out your declarations page right now and look for the words "actual cash value" or "ACV" near your roof or dwelling coverage.

What you want

Replacement Cost Value (RCV)

Your insurer pays to replace your damaged roof with comparable new materials, minus your deductible. If your roof costs $18,000 to replace and your deductible is $2,000, you receive $16,000.

This is what most homeowners assume they have. Verify it before you file.

What you may actually have

Actual Cash Value (ACV)

Your insurer pays replacement cost minus depreciation. On a 15-year-old roof, that depreciation can be 50–70%. The same $18,000 roof might net you $5,000–$7,000 after depreciation and deductible.

Some homeowners have been responsible for 60–70% of their replacement cost out of pocket.

The one question to ask your agent: "Is my roof currently settled at replacement cost value or actual cash value?" Ask it before you file. The answer changes everything about how you approach the claim — and whether filing makes financial sense at all.


Insurance Terms Colorado Homeowners Need to Know

These words appear in your policy and your claim paperwork. Know what they mean before you're in the middle of a conversation with an adjuster.

Deductible

The amount you pay before insurance covers the rest. In Colorado, many policies now have a separate, higher deductible specifically for wind and hail — sometimes 1–2% of your home's insured value rather than a flat dollar amount.

Depreciation / Holdback

The amount withheld from your initial check under RCV coverage. You receive the depreciated value upfront, then the holdback amount after work is complete and you submit receipts. Don't spend the first check thinking that's all you're getting.

Scope of Loss

The adjuster's written assessment of what was damaged and what it costs to repair or replace. Review it carefully. If it's missing damage you believe exists, you can dispute it — but you need to do so before you sign off.

Assignment of Benefits (AOB)

A document that transfers control of your insurance claim to your contractor. Once signed, the contractor deals directly with your insurer and you lose visibility into your own claim. Do not sign an AOB.

Supplemental Claim

A request to reopen your claim when additional damage is discovered during the repair process — rotted decking, damaged flashing, etc. A good contractor documents these and submits them to your insurer on your behalf.

Statute of Limitations

Colorado gives homeowners two years from the date of loss to file a claim. Don't let a contractor pressure you with false urgency — but do be aware that this window exists and matters.


How to File a Roof Claim the Right Way

Do this yourself. In this order. Don't let anyone else run this process for you.

1

Get a roofer's assessment before you call your insurer

Find a trusted local roofer and ask for an honest damage assessment first. A good roofer tells you whether the damage is significant enough to file a claim — or whether it's superficial wear that doesn't justify the claim and the potential rate increase that comes with it. File only if it makes sense.

2

Call your insurance company directly

Use the number on your declarations page or your insurer's app. Do not let a contractor file for you. Give the date of the storm, a brief description of the damage, and ask what documentation they need from you.

3

Document everything yourself before the adjuster arrives

Photograph your roof from the ground and gutters, your attic ceiling, and any interior damage. Note the date of the storm and keep any weather records. Your documentation and the adjuster's assessment may differ — having yours protects you.

4

Be present for the adjuster inspection

Schedule the appointment yourself and be there. Walk the roof with the adjuster if you can — or have your roofer present. Adjusters move fast and work many claims simultaneously. Having someone there who knows what to point out makes a difference.

5

Review the scope of loss carefully

When you receive the adjuster's written scope, compare it to your roofer's assessment. If damage is missing or the numbers seem wrong, ask your roofer to review it. You have the right to dispute the scope — and many homeowners get underpaid on the first pass.

6

Choose your contractor before you accept the settlement

Get at least three itemized bids from licensed local contractors. Your insurer's scope sets a baseline, but a thorough contractor may identify additional items — damaged flashing, rotted decking, inadequate ventilation — that warrant a supplemental claim before work begins.

7

Understand the payment schedule

Under RCV coverage, you typically receive two checks: an initial payment (ACV minus deductible) and a recoverable depreciation check after the work is complete and receipts are submitted. Do not pay your contractor the full amount until work is finished and inspected.

If your claim is denied: Under Colorado law (CRS 6-22-101), if you signed a roofing contract based on an expected insurance payout and your claim is denied, you have 72 hours from the denial notification to cancel the contract without penalty. Know this before you sign anything.


Questions to Ask Your Adjuster

A polite but informed homeowner gets a more thorough inspection. Ask these.

  • What is my specific deductible for wind and hail damage? Many policies now have a percentage-based deductible for storm damage that differs from your standard deductible. Confirm the exact number before you're surprised by it.
  • Is my roof covered at replacement cost or actual cash value? Get this confirmed in writing during the inspection, not after.
  • What are you finding, and what are you not approving — and why? Ask the adjuster to walk you through what they're documenting. You have the right to understand what's being included and excluded from your scope.
  • Is there a deadline to submit a supplemental claim if additional damage is found during repairs? Rotted decking and other hidden damage often appears when the old roof comes off. Know your window for adding to the claim.
  • When should I expect the scope and the initial payment? Get a timeline in writing so you know what to follow up on and when.
  • What documentation do I need to submit to receive the recoverable depreciation? Under RCV coverage, you'll need to provide proof of completed work to unlock the holdback amount. Know what they need upfront.

Insurance-Related Red Flags

These contractor behaviors around insurance claims are worth walking away from.

🚩 Offering to cover your deductible

This is insurance fraud under Colorado law. No exceptions. A contractor willing to commit fraud on your behalf will cut corners on your roof.

🚩 Asking you to sign an AOB

An Assignment of Benefits transfers control of your claim to the contractor. You lose visibility into your own money. Do not sign one.

🚩 Wanting to "handle" your claim for you

You file the claim. You schedule the adjuster. You stay in control of your own policy. A contractor who wants to run the process is creating a situation where you have no oversight.

🚩 Pressuring you to sign before the adjuster comes

You don't need a contractor before you file. Get the adjuster's scope first, then choose who does the work. Anyone pushing you to sign a contract before the inspection has a reason for that urgency.

🚩 Guaranteeing your claim will be approved

No contractor can guarantee an insurance outcome. Anyone who says otherwise is either uninformed or dishonest.

🚩 Billing your insurer for work not done

If a contractor suggests billing your insurance for materials or work beyond the actual scope, that's insurance fraud — and you're potentially liable too since your name is on the claim.