Insurance in plain English

On the Front Range, your homeowners policy is really a hail policy with other coverage attached. The Rocky Mountain Insurance Information Association (RMIIA) puts Colorado's insured hail damage at more than $5 billion over the last 10 years. It also says up to half of a homeowners premium can go to hail and wind.

So it's worth knowing how the policy pays before a storm, not after. This page covers the terms that decide how big the check is. The step-by-step of a claim is on how a hail claim works.

Replacement cost vs. actual cash value

Most claim confusion starts here. There are two ways a policy can value a damaged roof.

• Replacement cost (RC or RCV) is what it costs today to replace the roof with similar materials.
• Actual cash value (ACV) is replacement cost minus depreciation, meaning the wear the roof already had before the storm.

On a replacement-cost policy, the insurer usually pays ACV first. The gap between the two is called recoverable depreciation. Colorado law defines it that way, as the difference between replacement cost and actual cash value (C.R.S. 10-4-110.8(3)(h)). You generally collect it after the roof is replaced and you send proof.

An ACV-only policy pays the depreciated amount and stops. On a 15-year-old roof, that can be a lot less than the cost of a new one. Check which kind you have on your declarations page.

How long you have to collect recoverable depreciation on an ordinary hail claim is set by your policy. The fixed statutory timelines in Colorado law apply to wildfire total losses, not a typical partial roof claim. Read your policy's replacement deadline and keep track of it.

Overhead and profit on ACV

Contractor overhead and profit (O&P) is the markup a general contractor charges to run a job. The Division of Insurance's Bulletin B-5.1 says that on replacement-cost policies, insurers may not deduct O&P on top of depreciation when they figure ACV for an unrepaired structure. Bulletins are the Division's interpretation, not binding rules, but it's a useful thing to know when you read an estimate.

Percentage wind and hail deductibles

Many Colorado policies have a separate deductible for wind and hail. Instead of a flat dollar amount, it's a percentage of your dwelling coverage. The Division of Insurance gives 1%, 2% and 5% as examples.

Here's how that works out. Say your dwelling coverage (Coverage A) is $500,000 and your wind/hail deductible is 2%.

• Your deductible is 2% of $500,000, which is $10,000.
• If the roof claim comes to $8,000, the insurer pays nothing.
• If it comes to $25,000, the insurer pays up to $15,000, subject to the rest of your policy.

Notice the deductible grows when your coverage grows. Find the percentage on your declarations page now, so a storm doesn't surprise you.

No contractor may pay, waive or rebate your deductible. That's illegal under C.R.S. 6-22-105, and an insurer can disregard the estimate of a contractor who offers it. More on that in hiring a roofer.

Matching

If hail damages one slope and the replacement shingles don't match the rest, does the insurer have to replace the whole roof? The Division of Insurance says no Colorado law requires matching undamaged materials. The insurer has to repair or replace the damage caused by the covered event.

Whether your policy goes further is a question of its wording. Courts have ruled on specific policies, so the answer depends on yours.

Cosmetic damage endorsements

Some policies add an endorsement that excludes "cosmetic" damage. That usually means dents that don't affect how the roof works, like dings in metal roofing, vents or gutters. If you have one, a dented metal roof that still sheds water may not be covered.

We didn't find a Colorado statute or Division of Insurance consumer page that addresses these. Check your declarations and endorsements, and ask your agent in writing if the language isn't clear. This matters most if you're thinking about a metal roof.

Law and ordinance coverage

When a roof is replaced, the building department makes it meet current code. That can mean items your old roof didn't have. In Fort Collins, for example, Class 4 impact-resistant shingles are required when 50% or more of the roof is replaced, along with an ice barrier at all eaves and drip edge.

A standard policy pays to replace what you had. Law and ordinance coverage pays for the extra cost of meeting code. Colorado law requires insurers to offer it at no less than 20% of the dwelling limit. Offering isn't the same as including, so check whether you accepted it and at what level.

Since January 1, 2025, the same statute also lists factors insurers must consider when estimating a loss. These include labor and materials, contractor overhead and profit, debris removal, permits, the roof's materials and type, and a contractor estimate you submit.

Reporting and time limits

No Colorado statute gives a specific number of days to report hail damage. Your policy's notice clause controls, and the Division of Insurance says to report as soon as possible. Waiting makes it harder to tie damage to a specific storm.

Suing is different. C.R.S. 10-4-110.8(12) lets you sue within the statutory limitations period even if your policy sets a shorter one. Since January 1, 2014, insurers may not issue or renew homeowners policies with shorter suit periods.

When you disagree with the insurer

Start by asking the adjuster for an itemized explanation of the settlement. If you dispute it, ask for the specific policy language they're relying on. If a claim is denied, ask for a written denial that states the reason and the policy language. That's all Division of Insurance guidance.

Public adjusters

A public adjuster works for you, not the insurer, to prepare and negotiate your claim. They must be licensed by the Division of Insurance, they often charge a percentage of the claim, and hiring one is optional. A roofing contractor can't act as one. A roofer with a valid contract may only discuss the repair scope with your insurer.

Appraisal

Many policies have an appraisal clause for disputes over the amount of loss. Each side picks an appraiser, and an umpire settles what they can't agree on. Division of Insurance Bulletin B-5.26 says appraisers must be fair and competent, with no financial interest, and must disclose contingency fees. Umpires must be impartial and avoid one-sided communications.

After the claim: renewals and discounts

Non-renewal. The Division of Insurance says no Colorado law addresses whether an insurer can non-renew after a hailstorm, and insurers may consider multiple losses. That's not a reason to skip a legitimate claim. It is a reason to understand your deductible and to avoid filing for damage below it.

Class 4 discounts. Colorado law doesn't require insurers to discount impact-resistant roofs. Discounts vary by insurer. Ask yours before you pick a roof, and get the answer in writing. Keep in mind that Class 4 is a lab test, not a guarantee against hail damage. See Class 4 shingles.

Strengthen Colorado Homes grants. SB26-155, signed June 4, 2026, creates a program to fund grants for wind- and hail-resilient roofs, meaning IBHS FORTIFIED certification or an approved equivalent. Grants are expected no earlier than 2027. The law requires insurers to report on resilient-roof discounts, but it does not require a discount.

What to check on your policy today

• Replacement cost or actual cash value on the roof
• Your wind/hail deductible, as a percentage and in dollars
• Any cosmetic damage or roof-specific endorsements
• Law and ordinance coverage and its percentage
• The notice clause and the deadline to collect recoverable depreciation
• Whether your insurer offers an impact-resistant roof discount

For context on how often this comes up: RMIIA says Colorado can expect three to four catastrophic hailstorms a year, each causing at least $25 million in insured damage. Our roof report tracks recent storms.

Common questions

Is there a deadline to file a hail claim in Colorado?

No Colorado statute sets a specific number of days to report hail damage. Your policy's notice clause controls, and the Division of Insurance says to report as soon as possible. See how a hail claim works.

Does my insurance company have to replace my whole roof if only part is damaged?

Not by state law. The Division of Insurance says no Colorado law requires an insurer to match undamaged materials. Whether your policy does is a question of its wording.

What is recoverable depreciation?

Colorado law defines it as the difference between replacement cost and actual cash value. On a replacement-cost policy, the insurer usually holds it back until the work is done, then pays it once you show the job is complete under your policy's terms.

Will my insurer drop me after a hail claim?

It can happen. The Division of Insurance says no Colorado law addresses whether an insurer may non-renew after a hailstorm, and insurers may consider multiple losses.

Do I get a discount for a Class 4 roof?

Maybe. Colorado law does not require one, and discounts vary by insurer, so ask yours before you choose a roof. See Class 4 shingles.

Should I hire a public adjuster?

It's optional. Public adjusters must be licensed by the Division of Insurance and usually charge a percentage of the claim. They tend to make the most sense on large or disputed claims.