At Rock Canyon Roofing, we often hear homeowners ask: “If my insurance company pays $15,000 to replace my roof, and I find a contractor willing to do it for $12,000, can I just keep the $3,000 difference?”
The short answer: No.
In Colorado, it is illegal to keep leftover insurance funds from a roof insurance settlement. Here’s why.
Insurance Claim Basics
When a storm damages your roof, your insurance company pays for roof repair or roof replacement in Colorado so your home can be restored to its pre-storm condition. Not to put extra money in your pocket.
The payout is calculated based on fair market costs for labor and materials in your area. Your contractor is expected to complete the job according to that scope and cost—not cut corners.
Why Keeping The Difference is Illegal
Colorado law makes it clear that insurance claim money must be used for the roofing work it was intended for.
Under C.R.S. § 18-5-211 (Insurance Fraud), it’s unlawful to “present a claim…knowing that the claim contains false, incomplete, or misleading information.”
In simple terms: if you claim settlement money is for a new roof installation but keep some for yourself, it may be considered insurance fraud.
Risks of Cutting Corners
- Legal Consequences: Misusing funds from a roofing claim can lead to penalties or even criminal charges.
- Poor Quality Work: Low-ball bids often mean unlicensed crews, cheap materials, or no warranty.
- Future Claims at Risk: Insurers may deny later storm damage repairs if they discover misuse of funds.
- Home Value Issues: A poorly done or incomplete roofing project can hurt resale value and fail inspections.
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The Right Way to Handle an Insurance Claim
- Hire a reputable roofing company in Colorado that understands the insurance process.
- Match the work to your insurer’s estimate so the project is adequately covered.
- Consider upgrades—you can pay the difference if you want premium materials or a higher-end roofing system.
- Protect your investment. A quality roofing project ensures your home remains safe, insurable, and storm-ready for years to come.
Rock Canyon Roofing’s Promise
We don’t play games with insurance money. Every roofing project in Colorado we complete is done honestly, legally, and to the highest standard.
We are insurance claims experts. We work directly with your insurance company to maximize your settlement and make sure your home is fully restored with a roof you can trust.
Bottom Line: In Colorado, under C.R.S. § 18-5-211, it is illegal to pocket insurance money from your roof replacement insurance claim. Always use those funds for their intended purpose, to protect your home.
Disclaimer
This blog is for informational purposes only and should not be taken as legal advice. If you have questions about your roof replacement insurance claim in Colorado, you should consult with your insurance company or a qualified attorney.
Ready to Protect Your Home?
If your roof has storm damage or you’ve received an insurance settlement, don’t risk costly mistakes. Let the experts at Rock Canyon Roofing handle the process from start to finish.
Call us today for your FREE roof inspection and let us help you get the most from your roof replacement insurance claim—legally, honestly, and with the highest standards in roofing.
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