In 2023, I sat in my house through a hailstorm that lasted over an hour. It was the first time I’d ever been home during one, and the first time I’d seen hail the size of golf balls coming down on my own roof.
When I finally walked outside, the damage was everywhere. The roof was destroyed. Windows were broken. Siding, gutters, screens. An hour of golf-ball hail doesn’t leave much untouched.
By the time the roof, the windows and everything else was repaired, the bill came to more than $30,000.
Here’s the part that matters for you: I had a very small deductible. My insurance covered nearly all of it. I was even able to upgrade to Class 4 impact-resistant shingles, so with any luck I won’t be dealing with hail damage again for a long time.
That scenario is disappearing. If your policy renewed recently, it may already be gone.
What’s changing
Colorado insurance companies are moving away from the flat deductibles most of us have always had for hail and wind damage. Instead, they’re switching to percentage deductibles: a percentage of your home’s total insured value, not a fixed dollar amount.
Do the math on that. A 1% deductible on a home insured for $1 million is a $10,000 deductible. At 2%, it’s $20,000. In today’s Denver market, that’s a lot of homes, and a lot of homeowners who think they’re covered and will find out otherwise the day after the next big storm.
In other words: under the new terms, many homeowners will pay for most of a new roof themselves.
Jim Smith covered this in detail in his Real Estate Today column, and it’s worth reading in full. His follow-up column is worth a look too: one reader’s carrier now requires an actual leak or hole in the roof, not just storm-damaged shingles, before approving a replacement.
What I’d do this week
Call your insurance agent. If you haven’t been through a renewal recently, don’t wait for the letter. Ask two questions: “What is my wind/hail deductible?” and “Is it a flat amount or a percentage?” If you see a line item called “Wind/Hail Deductible” or “Named Peril Deductible” with a percentage next to it, that percentage applies to your home’s insured value.
Check what your home is insured for. If your dwelling coverage is inflated, your percentage deductible is inflated right along with it. Your insurer should be valuing the structure, not the land underneath it.
Document your roof now, before the next storm. Photos, inspection reports, anything with a date on it. If there’s ever a dispute about what damage came from which storm, documentation wins.
Start saving every roof receipt you have. Roof work, windows, repairs: keep it all, with the product details. I still have everything from my 2023 repairs, including the Class 4 shingle documentation. (Ask your agent about a premium discount for Class 4, by the way. Many carriers offer one.)
Shop around. Not every carrier has made this change yet, and among those that have, the percentages vary. The difference between a 1% and a 2% deductible is literally double the money out of your pocket. This is a year to get quotes, not auto-renew.
Ask about supplemental deductible coverage. A whole new insurance product has sprung up specifically to cover wind and hail deductibles. That’s how big this gap has become. It’s an extra premium, but for some homeowners it’s the difference between a manageable storm and a five-figure surprise.
Can we do anything to stop this?
Honestly? Not individually. This is an industry-wide repricing of Colorado’s hail risk, and no amount of calling your agent is going to talk a carrier out of it. The one avenue for actual change is regulatory. Colorado’s Division of Insurance can look at whether these deductibles are being disclosed clearly and whether tying them to your home’s value (instead of, say, the cost of your roof) is fair to consumers. If this change hits you hard at renewal, filing a comment or complaint with the Division is worth ten minutes of your time.
But plan as if it’s here to stay. The steps above are how you protect yourself in the meantime.
If you’re thinking of selling in the next five years
This one goes on your list. Buyers’ insurance companies are inspecting roofs before they’ll write a policy, and a home with a documented, impact-resistant roof, receipts and all, is a genuinely easier sale than one with a question mark on top of it. Your roof paperwork is now part of your home’s resume. Treat it that way.
And if you need a fabulous roofer
I have one. She took care of my roof, my windows, and every repair after that 2023 storm, and I’d hand her name to anyone. If you’re overdue for an inspection, want a Class 4 quote, or just want a second opinion on an insurance estimate, send me a note and I’ll connect you personally.
Same goes for questions about how any of this affects your home’s value or a sale you’re planning. Reach out. I’m happy to talk it through.
— Cindy