Insurance Claim Payments
When storm damage is covered by insurance, the claim payment covers the cost. [Learn more about roof replacement costs](/knowledge-center/cost-insurance/roof-replacement-cost/) to understand what the insurance payment applies to.
Insurance pays the replacement cost minus depreciation. You may need to submit proof of completion to receive the full amount. [NRIS explains the insurance claim payment process](https://www.nris.com/resources) including ACV and RCV phases.
Insurance pays the full cost of replacement after repair is completed. Some policies require a holdback of depreciation until completion.
You are responsible for your deductible, typically $500-$2,000 for homeowner policies.
Home Equity Loans and HELOCs
Home equity financing uses your home value as collateral:
Fixed-rate loan with monthly payments. Rates are typically 6-9% APR. Best for one-time projects like roof replacement.
Variable-rate line of credit you can draw from as needed. Flexible but rates can increase. Best for ongoing home improvements.
Typically require 15-20% equity in your home and good credit (620+ score). Home must be fully paid or have significant equity.
Personal Loans
Unsecured personal loans do not require home equity:
Fixed-rate loans typically 8-15% APR. No collateral required. Terms are 2-7 years. Best for homeowners who want to avoid tying up their home. [Bankrate roofing financing guide](https://www.bankrate.com/loans/personal-loans/) compares financing options for home improvements.
Credit unions often offer lower rates (6-12%) than banks. Membership may be required.
Credit score of 600+ typically required. Loan amounts up to $50,000 depending on income and credit.
Contractor Financing
Some roofing contractors offer financing options:
Direct financing from the contractor. Often available with 0% interest for 6-12 months. Best for homeowners with good credit.
Contractor partners with financing companies. Applications are quick and approvals are often immediate. Rates vary based on credit.
Typically 0% interest for 6-12 months or 3-5 year terms with 8-15% APR. Check terms carefully before committing.
Financing Option Comparison
Compare financing options for your situation:
Best option if you have storm damage. Covers 100% of replacement cost minus deductible. No interest or monthly payments.
Lowest interest rates (6-9%). Best for homeowners with 20%+ equity. Ties up your home as collateral.
No collateral required. Higher rates (8-15%). Best for homeowners without significant equity.
Quick approval and flexible terms. Variable rates (0-15%). Best for homeowners who want convenience.
Frequently Asked Questions
How can I finance a roof replacement in Denver?
Options include insurance claims (if storm damage), home equity loans (6-9% APR), personal loans (8-15% APR), contractor financing (0-15% APR), and HELOCs. Insurance claims are the best option when applicable.
Do roofing contractors offer financing?
Yes, many contractors offer financing through in-house programs or third-party partners. Typical terms are 0% interest for 6-12 months or 3-5 year terms with 8-15% APR. Check terms carefully before committing.
How much does a roof replacement cost in Denver?
Asphalt shingles: $8,000-$15,000. Metal roofing: $14,000-$25,000. Tile roofing: $22,000-$45,000. Costs vary by roof size, pitch, materials, and complexity.
Can I use my insurance to pay for a new roof?
If your roof is damaged by a covered peril (storm, hail, wind), your insurance may cover the full replacement cost. File a claim promptly and get a professional inspection to document the damage.