Beware these words: “Can we cover your insurance deductible?”

Fraud is common in any industry these days, and the roofing industry is no different. but probably even more so in the roofing industry. Random Joes and “fly-by-night” outfits can set up shop in any neighborhood, preying on panicked homeowners who are told that they need their roof repaired “now,” but are terrified by the cost.

And so in creep the “fly-by-night” roofing operations who offer to “help” you through the Insurance claim process. Usually, they then offer to pay your deductible for you. If you don’t have time to read through the rest of this article, that’s perfectly fine, but know this: Just don’t do it!

To start, the law in Colorado is very clear:
“Business practices that reduce or eliminate the need for actual payment of required copayments and deductibles by an insured for property damages interfere with contractual obligations entered into by the insured and the insurer relating to such payments when the costs arising from the reduction or elimination are passed on to the insurer.”
-COLORADO HO– USE BILL 99-1059

In other words, will the roofer will be at fault, but the homeowner as well. When a homeowner signs a policy, he/she is signing a contract that they will not accept reimbursement for a deductible or allow the repairer to pay the deductible for them. This law clarifies that doing so constitutes fraud and you can be charged with breach of contract.

And don’t believe any of these lines either:

“It’s only illegal if the roofer pays the deductible directly.”
Not true. The law in Colorado specifies that any “rebates” or “things of value” that are given to the homeowner as a means of offsetting the expense of the deductible is illegal, even if the homeowner pays the deductible up front and is later compensated by the roofer.

“This is different. We’re just paying you to advertise for us.”
Roofers will often offer to pay the homeowner the amount of the deductible in exchange for putting a sign in their yard. It sounds okay, right? The problem is it really doesn’t matter if the roofer takes $1000 in cash out of his own pocket and hands it to you. If he is being paid by the insurance company for repairing that roof, that money indirectly came from them. When the insurance company finds out they can easily show in court that the money that was paid to you for “advertising” actually came directly or indirectly from your insurance claim. Think your roofer doesn’t know that? Ask him if it’s okay if you let the insurance company know about his offer.

“We can just keep it between us.”
Good luck with that. When a roofer is sued by the insurance company, their customers are investigated as well. Even if the deal is not specified in the contract, financial audits usually uncover this kind of thing. With a wink and a nod the roofer might act like he’s doing you a favor, but don’t count on any favors when the insurance company subpoenas your bank statements.

So sure, you’re deductible is scary. But not nearly as scary (or expensive) as being investigated or, worse, charged with insurance fraud. Stay in the clear; use an honest roofing company.

And moreover, it’s likely that an honest roofing company’s workmanship will reflect their work ethic. They are more likely to do the job right (the first time), be well-insured, and have a good warranty policy.

Have questions? Feel free to contact us. Honest companies (like Revelation Roofing) will NEVER put pressure on a homeowner, and certainly never put a homeowner at risk.

Worried that you’ve “already fell for it?” Rest assured, it may not be too late. You may have already given in to the pressure of company X and have your insurance check, but now you realize that something just doesn’t seem right. Take a look and assess: is Company X the best fit to PERFORM the work? If you have any concerns or questions, give us a call (970.846.4385) or send an email ( RevelationRoofing@gmail.com ), or even consider contacting an insurance agent.