The Colorado Consumer Protection / Roofing Bill: What Homeowners Should Know
The rules every Colorado roofer is required to follow — and the rights you have as a homeowner
What You'll Learn
- Why a roofer paying your deductible is illegal in Colorado
- How your payments are protected in a trust account
- What a contractor must disclose before work begins
- Your 72-hour right to rescind a roofing contract
A Quick Background
The Consumer Protection / Roofing Bill was signed into Colorado law on June 6, 2012, and it includes a number of changes to industry business practices that every homeowner should know about before selecting a roofing contractor — particularly after a hail event.
We follow this bill on every Colorado project we touch. Here is what it actually says.
1. No Deductible Games
A roofing contractor in Colorado cannot pay, waive, or rebate an insurance deductible for the homeowner. Any roofer who advertises or offers to do so is breaking the law. If someone offers, it's a red flag — full stop.
This matters because deductible 'rebates' are one of the oldest tricks in storm-chasing. The pitch sounds friendly ("we'll cover your deductible!") but it almost always shows up later as inflated insurance scope, missing line items on the install, or both. Your deductible is part of the contract you have with your carrier — and your roofer is not allowed to undermine it.
2. Your Money Is Held In Trust
All payments from the property owner need to be held in a trust account until materials have been delivered to the jobsite, or until a majority of the roofing work has been performed. Your dollars do not just disappear into a contractor's operating account up front.
3. The Contractor Must Disclose Specific Information
Before work begins, a roofing contractor must provide the homeowner with several specific pieces of information:
- Identification of their surety and liability insurance provider
- Approximate dates of service
- Scope of work and materials to be provided
- Cost
- Contact information
At Roof Worx, you get all of this in writing as part of our standard estimate package.
4. The 72-Hour Right To Rescind
You have the right to rescind a contract within 72 hours. If you do, any money you have already paid as a down payment must be returned to you within 10 days of the rescission. This is one of the strongest homeowner protections in the bill — and it is the reason high-pressure "sign right now" pitches are such a giant warning sign.
If a roofer ever tells you the offer disappears if you do not sign today, walk away. Any honest Colorado contractor knows you have 72 hours after signing to change your mind. A high-pressure close is a feature, not a bug — it exists because the offer cannot survive a second opinion.
What This Looks Like At Roof Worx
Our Smooth Process is built around this bill, not in spite of it:
- We give you written scope, materials, cost, insurance info, and contact details up front
- We never ask you to skip, waive, or rebate a deductible
- Down payments go into the appropriate trust account
- You are never pressured into signing the same day we walk your roof — and you always have the 72-hour rescission window
If you'd like a copy of the Colorado Roofing Association's plain-English fact sheet on Senate Bill 38 — the Residential Roofing Bill of Rights — we can email it to you, or you can find it at the Colorado Roofing Association.
And One More Thing — Class 4 Discounts
While we are on the subject of insurance: most carriers offer up to 30% off for Class 4 hail-impact-resistant shingles. Some carriers attach cosmetic exclusions to that discount, which can make storm damage claims tougher later. Check with your agent on both sides of the trade-off before you decide.
Frequently Asked Questions
Is it really illegal for a Colorado roofer to pay my deductible?
Yes. The Colorado Consumer Protection / Roofing Bill specifically prohibits a roofing contractor from paying, waiving, or rebating an insurance deductible on behalf of a homeowner. Any offer to do so is a violation of state law and a strong signal to walk away.
How do I actually exercise my 72-hour right to rescind?
Send written notice (email is fine, certified mail is better) to the contractor within 72 hours of signing the contract, stating that you are rescinding. Any down payment you have made must be returned to you within 10 days. Keep a copy of your notice.
Does the 72-hour rescission window apply to insurance-claim roofs?
Yes. The rescission window applies to residential roofing contracts in Colorado regardless of whether the work is paid out of pocket or through an insurance claim.
What should be on the written estimate before I sign?
Scope of work and materials, total cost, approximate dates of service, the contractor's surety and liability insurance information, and clear contact information for someone you can reach during the project. If any of those are missing, ask for them in writing before signing.
How does Class 4 affect my insurance premium and future claims?
Most Colorado carriers offer up to 30% off the wind/hail portion of your premium for Class 4 impact-resistant shingles. Some carriers attach a cosmetic-damage exclusion to that discount, which means functional damage is still covered but cosmetic dents may not be. Confirm both sides with your agent before signing for the upgrade.