If you live in the Denver metro area, you know that spring and summer bring more than just beautiful hiking weather—they bring hail. Colorado sits squarely in "Hail Alley," experiencing some of the most frequent and severe hailstorms in North America. When golf-ball-sized hail destroys your roof, the first question you ask is: Will my insurance cover this?
The short answer is yes, but with a massive catch.
Almost all standard homeowners policies cover hail damage to your roof, siding, and structure. The danger lies in how they pay out that coverage. In recent years, due to the astronomical cost of hail claims in Colorado, many carriers have quietly shifted their roof coverage from "Replacement Cost" to "Actual Cash Value" (ACV).
Replacement Cost vs. ACV
- Replacement Cost: The carrier pays whatever it currently costs to replace your damaged roof with new materials of similar kind and quality (minus your deductible).
- Actual Cash Value (ACV): The carrier pays the replacement cost minus depreciation based on the age of your roof.
If you have a 15-year-old roof that costs $20,000 to replace, an ACV policy might apply 60% depreciation. After your deductible, the insurance company might only write you a check for $6,000, leaving you to pay $14,000 out of pocket. With Replacement Cost, you would only pay your deductible.
Check your deductible type
Another Colorado-specific issue is the wind/hail deductible. Many carriers now enforce a separate percentage deductible for wind and hail—often 1% or 2% of your home's total dwelling coverage. If your home is insured for $600,000, a 2% hail deductible means you pay $12,000 out of pocket before insurance kicks in. Look for policies with flat-rate deductibles (like $1,500 or $2,500) whenever possible.
The bottom line: Before the clouds turn green this spring, check your declarations page. If you see "Actual Cash Value" applied to your roof, or a high percentage deductible, contact Cassondra to find a carrier that offers superior protection.