The owner of Colorado’s Roofing has spent several years working on roof replacement projects across the Denver metro but believes that the burdens placed on insured homeowners have hit an all-time high. According to Aurora Colorado, homeowners’ insurance companies have changed their internal practices to delay payments even after work has been completed.
Colorado is home to the country’s 10th most expensive insurance premiums according to the Institute of Insurance Information with monthly premiums averaging $1,446. According to data from the National Associations of Insurance Commissioners, average premiums in Colorado rose 1.6 percent from 2017 to 2018. Colorado is the #2 state for hail claims, behind only Texas. Due to more people moving to hail prone areas and a rapid population increase in Colorado, the association of commissioners expects insurance premiums to continually rise in the Centennial State.
Most Colorado insurers have raised their premiums to the maximum allowable amount though maximum premiums aren’t enough for a healthy profit margin. According to local roofers, insurers carriers are maintaining their profit margins by denying valid claims and delaying payment for completed jobs. Insurance carriers are also purchasing reinsurance, which means many insurance companies are insured by the same companies.
The delayed payments and restructuring of policies have led to a burden on the consumer including higher construction costs, labor costs, and higher insurance rates for roofing companies that are passed along to the consumer. The increased costs are expected to double costs for the homeowner within a few years.
Denver Roofing companies like ABC Roofing believe insurance companies are intentionally delaying payments or denying claims to pad their own pockets at the expense of roofers and homeowners. The delays in payments and claim denials are expected to grow as more people move to severe-weather prone areas like the mountain west.
While there are dozens of different insurance companies throughout the country, most policies (46%) are controlled by five companies (Allstate, Farmers, Liberty Mutual, State Farm, and USAA.) Of the top five insurers, most have reinsurance policies with Lloyds of London. The more insurance policies are consolidated, the more homeowners are likely to suffer.
Colorado roofers are urging their customers to reach out to their local insurance commissioner if they feel their payments are being delayed, or if a valid claim was denied or only partially paid out. It will take the combined efforts of homeowners, roofing companies, and smaller insurance carriers to make changes to the policy for our roofs and homes before costs spiral out of control.