7 Insurance Claim Mistakes That Cost Colorado Homeowners Thousands

Filing a homeowners insurance claim is something most Colorado homeowners do once or twice in their lives. Insurance carriers process thousands every day. That experience gap — between what’s normal for you and what’s normal for them — is why so many homeowners end up with partial settlements, denied damage, or paid less than they’re owed.

Here are the seven mistakes we see most often, drawn from 15+ years of working alongside Colorado adjusters on storm damage claims.

Mistake 1: Calling Insurance Before Calling a Contractor

Most homeowners discover damage and immediately call their insurance company. That feels logical — it’s their property, their policy, their claim. But it sets up the entire claim around the adjuster’s perspective, not yours.

Better sequence:

• Document damage with photos (no climbing required)
• Get a free inspection from a HAAG-certified contractor
• Get the contractor’s written damage report
• Then call insurance with a complete picture

When you call insurance with documentation already in hand, you’re starting the claim from a stronger position. The adjuster knows you’ve done your homework.

Mistake 2: Not Having a Contractor Present at the Adjuster Visit

Insurance adjusters are professionals doing their job, but their job is efficiency. They have a list of inspections to complete each day. Their scope of work reflects what they can document in 20-30 minutes.

A contractor present during the inspection changes the dynamic. We walk every slope alongside the adjuster. We point out damage they might miss. We discuss code requirements that affect the scope. We document our own findings in real-time.

The adjuster’s final estimate is almost always more thorough when a contractor is on-site. This isn’t adversarial — most adjusters appreciate the second set of eyes. They get back to their truck with a more accurate scope, which means fewer supplemental claims later.

Mistake 3: Accepting the First Settlement

Insurance carriers send an initial settlement based on the adjuster’s first scope. Many homeowners assume that number is final. It isn’t.

Initial settlements often miss:

• Code-required upgrades (proper ventilation, ice & water shield in eaves)
• Damaged decking under shingles (can’t be assessed without tearing off the roof)
• Underlayment damage from wind-driven water
• Connected damage to gutters, siding, windows, screens
• Specialty work like flashing replacement, vent boots, ridge cap

As the project progresses and additional damage surfaces, your contractor should file supplemental claims. The initial settlement isn’t the end. It’s the start.

Mistake 4: Working with a Storm Chaser

After major storm events, out-of-state contractors flood Colorado. They’re called ‘storm chasers’ for a reason — they follow weather damage from market to market, and they’re gone in 6-12 months.

Storm chasers are problematic because:

• Warranties are worthless when the company no longer exists
• They lack relationships with local insurance carriers
• They often subcontract work to whoever is cheapest
• They’re focused on volume, not job quality
• Local code knowledge is often weak

Verify any contractor by checking how long they’ve operated in Colorado, whether they have a physical office in your area, and whether their reviews span multiple years (not just the past 6 months).

Mistake 5: Skipping Supplemental Claims

Most insurance carriers expect supplemental claims on storm damage projects. They build them into their process. But many homeowners (and many contractors) don’t know to file them.

Supplemental claims happen when work begins and additional damage is uncovered. Common scenarios:

• Tearing off old shingles reveals rotted decking
• Removing siding reveals water damage to sheathing
• Replacing windows reveals damaged framing
• Roof replacement reveals damaged chimney flashing

These additional damages are typically covered under the original storm claim — but only if a supplemental is filed. Without it, you pay out of pocket for damage that should have been covered.

Mistake 6: Cashing the Check Without Reading the Estimate

Insurance settlements come with a detailed estimate (often called a ‘scope of loss’ or ‘Xactimate report’). Most homeowners glance at the total and ignore the line items.

That’s a mistake. The line items reveal:

• What’s covered vs excluded
• Whether code upgrades are included
• If depreciation has been applied (and how to recover it)
• Whether the scope matches what your contractor will actually do
• Missing items that should be added

If your contractor’s bid is significantly higher than the insurance estimate, the difference often reflects items the carrier missed. A supplemental claim closes the gap.

Mistake 7: Not Understanding Recoverable Depreciation

Insurance settlements often pay in two parts: actual cash value (ACV) upfront, and recoverable depreciation released after the work is complete.

Many homeowners receive the first check, complete the work, and never claim the recoverable depreciation. That’s leaving thousands of dollars on the table.

To recover depreciation:

• Save all receipts and contracts from the completed work
• Submit them to your insurance carrier
• Most carriers release the depreciation portion within a few weeks
• Some carriers require photos of completed work

If your contractor handles the claim coordination (we do), they typically request the depreciation release on your behalf at project completion.

How to Avoid All Seven Mistakes

Pattern recognition: every mistake on this list traces back to the same root issue — homeowners trying to navigate a system designed around insurance carrier efficiency, without someone on their side who knows the system.

That’s why we structure our entire business around insurance claim coordination. Free inspections. On-site adjuster meetings. Supplemental claim filing. Depreciation recovery. We do all of it because the homeowners we work with consistently get fully-covered settlements when other contractors leave money on the table.

  Want to avoid these mistakes on your claim? Schedule a no-obligation inspection. We’ll document damage, advise on the claim filing strategy, and (if you choose to work with us) handle the entire process from initial call to final supplemental check.

Free Resource: Insurance Claim Walkthrough Guide

We put the full claim process into a free PDF guide — what to say on the first call, how to prepare for the adjuster visit, what supplemental claims to expect, and how to maximize your settlement.

Download Free Insurance Claim Guide