SB38 Bill: What Colorado Homeowners Need to Know

Colorado’s legislature passed a much-needed law that aims to help protect people in this state who have their roofs replaced. This is an important law, and Colorado homeowners should be aware of it as it is there to protect against unethical roofing practices. Read on to learn more.

What is the SB38 Bill

It is forbidden for Roofers to offer waived deductibles to their clients.

Colorado Senate Bill 38 (SB38) is an act that prohibits Colorado roofers from offering waived deductibles to their clients. This roofing law aims to regulate the functions of residential roofers. It also aims to offer protection to insurance companies and property owners.

The bill lays down a series of vital regulations on roofing contracts that total $1000 or more. These regulations include:

• Clear Contracts
  The bill demands that there must be a contract between the client and the roofer. Both parties must sign the contract to agree on any contract details. Some of these details include the insurance deductible statement, cancellation policy, and the scope of work, including the type of shingle and color.
• Insurance Deductibles
  The SB38 bill prohibits using an insurance deductible waiver in roofing services. The practice is illegal, and roofers are not allowed to waive, rebate, or pay a homeowner’s insurance deductible. The policy also extends to the advertisement of such offers.
  The bill also states that an insurance company may not consider the roofer’s quote if a roofer waves a deductible.
• Adjuster Regulations
  SB38 also prohibits a roofing contractor from acting as a public adjuster or claiming to be one when that contractor is doing the roofing work. This does not mean that your roofing company cannot discuss your insurance policy with your insurer on your behalf, merely that the adjuster must be a separate entity. 

How it Protects Colorado Homeowners

This law aims to protect clients from roofing companies who might attempt to scam them by covering a deductible so that they can maximize their profits. It is critical to be aware of the law so that you can recognize when a company is acting unethically. If a company is willing to break the law to gain your business, what ethical practices are being used when installing your roof?