Roofers Are Commiting Insurance Fraud

Don’t Allow Them To Have You Participate In This Illegal Activity!

Under the provisions of Colorado SB-38 Residential Roofing Bill, waving hail damage deductible is illegal in Colorado and can be construed as insurance fraud.

Unknowingly homeowners enticed by contractors “covering their deductible” become an unknowing participant in fraudulent activity.

Under Colorado law, such interference by a contractor, with contractual agreement between an insurer and insured is considered property insurance abuse or fraud, depending on the specific facts.

 What storm season approaching, neighborhoods that will be affected by hail and wind damage will inevitably be approached by numerous roofing companies promising to repair and replace their roofs with no out-of-pocket cost to the homeowner, ensuring that their homeowners policy will cover the total cost of repairs. Waving hail damage deductible is illegal in Colorado

“The crime is charged as a Class 2 misdemeanor. Class 2 misdemeanors carry a potential sentence of 3 to 12 months imprisonment, a fine of $250 to $1,000, or a combination of imprisonment and fines.

In years past many homeowners have been deceived and swindled by roofing companies. In order to protect consumers Colorado Senate bill was enacted in 2012.

The legislation improves the way residential roofing contractors do business in Colorado while providing some basic protection when the next hail storm hits. Two Provisions, among others, must be included in the roofing contract language, or the contract may be unenforceable.

Contractor cannot pay, wave or rebate the homeowners insurance deductible in part or in whole.

Contractor shall hold in trust any payment from the property owner until the contractor has delivered roofing materials to the job site.

  • Senate Bill 38 prohibits a Colorado roofing company from paying a deductible
  • Senate Bill 38 prohibits a roofing contractor from waiving a deductible
  • Senate Bill 38 prohibits a roofing contractor from contributing any monies or actions toward the deductible
  • Senate Bill 38 will not allow a contractor to provide a sign credit for installing a yard sign
  • Senate Bill 38 makes it illegal for a roofer to give a rebate while working on an insurance claim
  • Senate Bill 38 makes it illegal for a Colorado roofing company to give merchandise construed to be payment or toward a deductible
  • Senate Bill 38 doesn’t allow a roofer in Denver to give a gift certificate related to a roof claim toward the roof deductible
  • Senate Bill 38 has deemed that a roofer’s coupon that’s provided in conjunction with a roof claim will be construed as insurance fraud
  • Senate Bill 38 makes any of these offenses punishable by law

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