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Understanding Insurance Fraud in Roofing Repairs

The Risky Question: "Will You Help Me Pay My New Roof Insurance Deductible?"


The question lingers: "Will you help me pay my new roof insurance deductible?" A straightforward response is necessary here - we can't, not because we don't want to assist, but because it's illegal.



The Law and Your Roofer's Limitations

According to Colorado State Law SB38, passed on June 6th, 2012, it is unlawful for a roofing contractor to pay, waive, or rebate any part or all of a homeowner's insurance deductible. This is not a minor legal misstep. It's insurance fraud, with serious consequences for both the homeowner and the roofer.




A Closer Look at the Roofing Insurance Claim Process

Picture this: you have some roof damage and the total repair cost is $10,000. Your insurance company says you need to pay your deductible of $1,000, which is a part of the total cost you must cover. Now, your roof is a bit old, so your insurance company sets aside an amount - let's say $4,000 - for what they call depreciation, or the decrease in value due to age.



The Danger of a 'Paid' Deductible

This means your insurance company sends you a first payment of $5,000, not the full $10,000. To get the remaining $4,000, your roofer has to send them a bill showing that the repair work did indeed cost $10,000. But now imagine your roofer tells you they can pay your $1,000 deductible for you. Sounds nice, right? Not so fast.



Unpacking the Truth Behind Insurance Fraud

The way they do this is by sending a false bill to the insurance company. They tell your insurance company that the work cost $10,000, but actually, they only charge you $9,000. This $1,000 difference is them "paying" your deductible. But here's the catch - that's insurance fraud. And it's not just the roofer in trouble, it's you too. So, while it might sound like a good deal, it's not worth the risk.



The Real Consequences of Fraud

Consider this for a moment: an act that appears helpful on the surface could land you in legal hot water, potentially resulting in steep fines, damaged credit, increased insurance premiums, or even criminal charges. This isn't a scenario you'd wish to wake up to one morning. Suddenly, the comfortable peace of your home could be shattered by the harsh reality of an insurance fraud investigation.



Protecting Your Home and Your Peace of Mind

Your home is your castle. It's your haven of security and peace. It's not worth risking all of this on a fraudulent attempt to save a bit on a deductible. No matter how it's dressed up, insurance fraud is a serious crime, with both the homeowner and contractor in potential legal jeopardy.




Stay Informed, Stay Vigilant

Stay informed, stay vigilant, and remember – the homeowner is always legally responsible for the insurance deductible. There's no shortcut or workaround for this responsibility that doesn't cross the line into fraud.



We're Here to Help

At Centerline Roofing, we're more than just a roofing company. As a licensed Colorado contractor, we serve both residential and commercial building owners and managers, offering a range of services tailored to your unique needs. We're committed to transparency and integrity in every aspect of our work.


We understand that navigating the world of insurance claims and deductibles can be complex. But remember, you're not alone in this. Our team is here to help you navigate these issues safely, responsibly, and legally, ensuring your home or commercial property remains the safe and secure sanctuary it's meant to be.


Don't hesitate to contact us if you have any questions about insurance, deductibles, or the roofing process. We're just a phone call away. Let Centerline Roofing be your trusted partner in maintaining your property's integrity and value.




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