Hiring a roofer the legal way (C.R.S. 6-22)

Bottom line first. Colorado has a short law for roofing jobs on homes. It makes the roofer give you a signed written contract, gives you a window to back out and get your deposit back, and says a roofer may not promise to pay or waive your insurance deductible. Read the contract before you sign, and never accept an offer to skip your deductible. This is general education, not legal or insurance advice, and your policy's own wording controls.

Which jobs the law covers

The law is C.R.S. title 6, article 22 (sections 6-22-101 to 6-22-105). It covers a roofing contractor, which means a person or business that does roofing work on a home for pay (C.R.S. 6-22-102(3)). Roofing work means building, rebuilding, changing, maintaining or repairing a roof (C.R.S. 6-22-102(4)(a)).

The home must be residential property: a detached one- or two-family home, or several single-family homes that are no more than three stories and have separate exits (C.R.S. 6-22-102(2)(a)). Some things are left out:

• new construction;
• a group of attached homes (such as townhomes), unless a condo or homeowners' association is responsible for the roof repairs, in which case it is not excluded for that reason (C.R.S. 6-22-102(2)(b)); and
• jobs where the pay is one thousand dollars or less per contract (C.R.S. 6-22-102(4)(b)).

So a normal hail-damage re-roof on a single-family house is covered. A tiny patch under the dollar line is not.

What the written contract must say

Before any roofing work starts, the roofer must give you a written contract signed by both of you (C.R.S. 6-22-103(1)). It must state at least:

1. the scope of the work and the materials;
2. approximate dates of service;
3. approximate costs, based on the damage known when you sign;
4. the roofer's contact information, including a physical address, email and phone;
5. the roofer's surety (a bond that backs the work) and liability insurer, with contact information, if there are any;
6. the roofer's cancellation and deposit-refund policy, including a clause that lets you cancel and get a full deposit refund within seventy-two hours after entering the contract, plus a statement that you may rescind under section 6-22-104;
7. a written statement that the roofer cannot pay, waive or rebate any part of your insurance deductible if you use insurance money for the job.

The face of the contract must also carry, in bold type, a statement that the roofer holds your payments in trust until the materials are delivered to your property or a majority of the work is done (C.R.S. 6-22-103(2)). Being held in trust means the money is not the roofer's to spend on other things first. The statute does not set a maximum deposit amount. It does tie what happens to your payments to this trust rule, so ask how any deposit will be handled.

If a contract is missing these items, treat that as a warning sign and ask for a corrected copy before you sign.

Your right to cancel (rescind)

To rescind a contract means to cancel it as if you backed out. There are two windows to know:

• The contract's own window. The contract must give you a full deposit refund if you cancel within seventy-two hours after entering it (C.R.S. 6-22-103(1)(f)).
• The denial window. If your contract is to be paid from insurance money and your insurer sends you written notice that the roofing claim is denied in whole or in part, you may rescind within seventy-two hours after you receive that notice (C.R.S. 6-22-104(1)(a)). This right does not apply to a denied request for extra work that could not reasonably have been foreseen when the first inspection or contract happened.

Give written notice to the roofer at the physical address in the contract. Email counts and takes effect when sent. Mail counts when you drop it in the US mail with postage paid. Hand delivery counts when delivered (C.R.S. 6-22-104(1)(b)). Keep a copy and proof.

After you rescind, the roofer has ten days to return your payments and deposits (C.R.S. 6-22-104(2)). The roofer may keep only enough to pay for work actually done in a workmanlike way (C.R.S. 6-22-104(3)), and may still pursue a claim for the reasonable value of materials ordered and actually installed before you cancelled (C.R.S. 6-22-104(4)).

The deductible rule

Your deductible is the part of a covered loss you pay yourself before insurance pays the rest. A roofer doing work paid from an insurance policy may not advertise or promise to pay, waive or rebate all or part of your deductible (C.R.S. 6-22-105(1)). That includes the common offers: "we will cover your deductible," "we will knock it off the bill," or "we will send you a rebate."

Here is what the statute says happens if a roofer breaks the rule (C.R.S. 6-22-105(2)):

• your insurer is not obligated to consider the roofer's estimate of costs; and
• you, or the insurer, may sue the roofer in court to recover damages caused by the violation.

In plain words, an offer that sounds like a gift can put the roofer's estimate in doubt with your insurer, which can slow or shrink your claim. The statute puts the legal duty on the roofer, but you are the one whose claim can be affected. The practical rule: the deductible is yours to pay. If a roofer makes such an offer, treat it as a red flag, say no, and tell your insurer you were offered it.

A roofer also may not claim to be, or act as, a public insurance adjuster (C.R.S. 6-22-105(3)). A roofer with a valid contract with you may still talk to your insurer about the scope of repairs for your job.

Example with real numbers

Jordan has hail damage. A roofer gives a signed contract for $14,000 to replace the roof. Jordan's deductible is $1,500, and the insurer agrees the covered cost is $14,000.

1. Insurer pays: $14,000 - $1,500 deductible = $12,500.
2. Jordan pays the roofer the $1,500 deductible. Total to roofer: $12,500 + $1,500 = $14,000.

Now say the roofer says, "Sign today and I will cover your $1,500." That is a promise to waive the deductible, which the statute prohibits (C.R.S. 6-22-105(1)). Saying yes would risk the insurer ignoring the roofer's estimate (C.R.S. 6-22-105(2)(a)), putting the $12,500 payment in question to save $1,500. Jordan declines and keeps the contract in writing.

Next, Jordan paid a $2,000 deposit. The insurer then sends written notice that it denied part of the claim. Jordan emails the roofer a rescission notice the next day, well inside seventy-two hours. The roofer must return the deposit within ten days (C.R.S. 6-22-104(2)), minus only the value of any work actually performed. If the roofer has done no work, the refund is the full $2,000.

Quick checklist before you sign

• Is the job over one thousand dollars and on a home the law covers?
• Is it in writing, signed by both sides, with every required item?
• Does it show the cancel window, the deductible statement and the bold trust statement?
• Did anyone offer to cover your deductible? If yes, stop.

If you are also thinking about what storm damage means for a sale of the house, see lesson hr-07.