ON 6-6-2012 Colorado legislature passed new roofing laws that will have a major effect on how business will be done in regards to roofing restoration work in Denver, Colorado. These new laws are designed to protect the consumers. The key for any person living in a storm affected area is to understand how these laws will change the way business is done. It is very important that the consumers understand these changes and how to ensure that you are making an informed decision when it comes to choosing your roofing contractor.
It is important for consumers to review the SB38 Colorado Consumer protection / Residential Roofing Bill. Whenever a large hail or wind storm hits the Denver area, there is a need to get the affected roofs replaced or fixed as fast as possible. If the storm is large enough, the insurance companies will send in “catastrophe” type of adjusters. This happens for a few different reasons. First of all every insurance company has a built in incentive to repair roofs before they start to leak, and the damage becomes worse. A $10,000 claim can quickly escalate to a $40,000 claim if a damaged roof is not fixed in a timely fashion. Of course this leads to many different roofing companies that compete for that business. The conflict of this competition becomes apparent when roofing company A agrees to pay the deductible portion of the claim, for the customer.
In order to cover this cost this company must cut corners in some way or another. Roofing company A may earn more business than roofing company B, who will not agree to cover that deductible. Even though it might be possible to still get the work done for $500 or $1000 less than the full claim amount, the end result will always be inferior. Obviously statistically speaking, company A might do twice as much work as company B, but it is statistically more likely that company A will be out of business sooner because of lower profit margins, or at the least will be less prepared to cover an unforeseen expense that might come up in the future, due to using inferior materials.
It is important to consider that if a roofing company is willing to submit a bill for $10,000 to an insurance company, but only bill the customer $9,000. This is insurance fraud.
The new laws passed on 6-6-2012 clearly state that it is illegal for a roofing company to pay for a customer’s deductible.
Review this factsheet to help understand the new changes affecting Colorado roofing.
Although many roofing companies will tell you that they have ways of working around this new law, time will only tell which companies will stand the test of time. There are many reputable roofing companies in Denver that understand that this law is designed to help the consumers and the roofing companies.
After the storm season, the number one concern for homeowners is always the same. Will you still be around to help me if my roof starts leaking in the future? As a homeowner you will always have the final say in which contractor you choose. Be smart and ask the right questions to ensure you are getting a quality job.
Checking a company’s status with the BBB is a great way to see how they are doing. Additionally the internet has multiple review sites that can give you insight as to the quality of that companies work.
By Nick Dorotik