A cosmetic damage exclusion is an endorsement added to a homeowners policy that removes coverage for hail damage which changes how your roof looks without letting water through it. In Texas it appears as endorsement HO-145 on the Texas homeowners forms and TDP-022 on the Texas dwelling forms, both approved by the Texas Department of Insurance in Commissioner’s Bulletin B-0030-98, effective May 2, 1998. It is optional, it has to be listed on your policy for it to apply, and under that bulletin it attaches to roofs receiving the premium credit for an impact-resistant roof covering. Most homeowners meet it for the first time in a denial letter.
That last sentence is the whole problem. This is a coverage change most people agreed to at a renewal call, in exchange for a lower premium, and never thought about again.
What the endorsement actually says
TDI’s bulletin defines cosmetic damage in specific language rather than leaving it to the adjuster’s judgment. Cosmetic damage is damage that alters the physical appearance of the roof covering but does not result in damage that allows the penetration of water through the roof covering, and does not result in the failure of the roof covering to perform its intended function.
Read that twice, because it contains two separate tests, and damage only has to fail one of them to fall outside the exclusion:
- Does the damage let water through the roof covering?
- Does it stop the roof covering from doing its job?
If the answer to either is yes, the damage is not cosmetic under that definition. If the answer to both is no, it is, and the endorsement excludes it.
The general version of this split, and how it is argued on ordinary asphalt shingles, is worked through in functional versus cosmetic hail damage. What makes the endorsement different from the everyday argument is that it moves the distinction from a judgment call about repair scope into a written coverage exclusion.
Why it exists, and what you traded for it
Here is the part that almost never appears on the pages ranking for this term, and it changes how the whole thing reads.
Under Commissioner’s Bulletin B-0030-98, endorsements HO-145 and TDP-022 apply to risks that are eligible for and receiving the premium credit for impact-resistant roof coverings meeting UL Standard 2218. That is the standard that produces the Class 1 through Class 4 impact ratings you see on shingle packaging.
So the endorsement was not designed as a trap. It was designed as one half of a bargain: you install a roof engineered to survive hail, the carrier gives you a discount for it, and in return the carrier stops paying for the dents that roof collects while continuing to shed water perfectly well. Whether that is a good bargain is a genuine question with an honest answer on both sides. It stops being a bargain only when nobody explains the second half of it, which is what happens most of the time.
Two limits worth stating plainly. Bulletin B-0030-98 dates from 1998, and carriers have filed their own cosmetic damage language since, so your policy may carry different wording under a different form number. And this is Texas. Other states regulate roof cosmetic exclusions differently or not at all, and nothing on this page describes how they work anywhere else.
How to find it on your own declarations page
This is the part that is worth doing today, before there is a storm and before there is a claim. It takes about ten minutes and does not require calling anyone.
- Open the declarations page, not the policy booklet. The declarations page is the personalized few pages listing your name, the dwelling limit, the deductibles and the forms attached. The booklet is the generic contract.
- Find the section headed something like “Forms and Endorsements,” “Endorsements Applicable,” or “Attached Forms.” It is usually a list of codes near the end of the declarations page, and it looks like reference clutter. It is not. That list is what actually makes up your contract.
- Read the form numbers. You are looking for HO-145, TDP-022, or anything whose description contains the words cosmetic, roof surfacing, roof covering, marring, denting or pitting. Carrier-specific versions often carry a different number and a plainer description.
- Check the wind and hail deductible line while you are there. It sits on the same page, and it is often a percentage rather than a flat amount.
- Look for an impact-resistant roof discount or credit. If one is listed, the endorsement is more likely to be attached, because that is the eligibility condition in the bulletin.
- If the list is codes with no descriptions, request the endorsement text from your agent in writing. You are entitled to know what is in your own policy, and a written request produces a written answer you can keep.
A fuller tour of every line on that document, including which one controls your settlement basis, is in reading your declarations page before you call anyone.
What the exclusion does not do
The pages selling around this term tend to describe the exclusion as though it removes hail coverage. It does not. Under the definition in the bulletin, it removes coverage for appearance-only damage to the roof covering. Several things sit outside it.
| Not excluded by a cosmetic damage endorsement | Why |
|---|---|
| Hail damage that lets water through the roof covering | Fails the first test in the definition |
| Damage that stops the roof covering performing its function | Fails the second test |
| Wind damage, lifted or missing shingles, structural damage | The endorsement addresses cosmetic hail damage to roof coverings |
| Interior water damage from a roof breach | Not damage to the roof covering |
| Other property on the policy, including gutters, screens, siding and vehicles under other coverage | Outside the roof covering |
None of that means a given claim will be paid. It means the exclusion is narrower than the phrase “cosmetic exclusion” sounds, and that the specific words in your endorsement, not the general concept, are what an insurer applies.
Where this bites hardest: metal roofs
The material most affected is metal, because denting is the characteristic way hail marks metal and dents rarely open a panel. A dented metal roof that still sheds water sits exactly in the middle of the definition. That case, along with tile and flat roofs, is covered in hail damage on metal, tile and flat roofs.
Impact-rated asphalt shingles are the other common case, for the same structural reason: the roof was chosen partly for its hail performance, the credit came with it, and the endorsement came with the credit.
If a claim is denied because of it
This page does not tell you whether to challenge a denial. What it can tell you is what the denial should contain and where the process is documented.
A Texas insurer must tell you in writing why it denied a claim, and the Texas Department of Insurance publishes the deadlines that govern the response: 15 business days to acknowledge a claim, 15 business days after receiving what it needs to decide, an extension of up to 45 days if it tells you why, and five business days to pay after it agrees to pay. If a denial cites a cosmetic damage endorsement, the written explanation should name the endorsement, and you should be able to match that form number against the list on your declarations page.
From there, the escalation path, including internal review, the appraisal process, a TDI complaint, and the point at which a licensed professional becomes relevant, is laid out in what to do when a roof claim is denied in Texas. If the disagreement is about the amount of the loss rather than about coverage, note that TDI describes appraisal as a process for disputes over the amount of a covered loss, which is a different question from whether the endorsement applies at all. That distinction decides which route is even available. If you are considering paid representation, what a public adjuster costs in Texas covers the licensing and fee rules before you sign anything.
Sources on this page were verified at the time of writing against the Texas Department of Insurance’s own published bulletin and consumer material, not against contractor or law firm summaries. The full claim process this sits inside is mapped in the Texas roof insurance claim, start to finish.
FAQ
How do I know if I have a cosmetic damage exclusion in Texas?
Check the forms and endorsements list on your declarations page for HO-145, TDP-022, or any endorsement whose description mentions cosmetic damage, roof surfacing or roof covering. If the list shows codes without descriptions, ask your agent in writing for the endorsement text. It cannot apply to your claim unless it is attached to your policy.
Is the cosmetic damage exclusion optional in Texas?
Yes. It is an endorsement, meaning it is added to a policy rather than built into every one. Under TDI Commissioner’s Bulletin B-0030-98 it applies to risks eligible for and receiving the impact-resistant roof covering premium credit, which is why it commonly shows up alongside a discount for a Class 3 or Class 4 roof.
Does the exclusion mean hail damage is never covered?
No. It addresses damage that alters the roof covering’s appearance without letting water through and without causing the covering to fail. Hail damage that breaches the roof, or that stops it doing its job, is not cosmetic under the definition in the bulletin. Wind damage and interior water damage are separate questions again.
Can I have the endorsement removed?
That is a question for your agent and carrier, not something this page can answer for you, and it is worth understanding what would happen to the associated premium credit before asking. Coverage changes generally take effect going forward, so a change made after a storm would not be expected to affect a claim already reported.
Does the cosmetic damage exclusion work the same way in other states?
No. HO-145 and TDP-022 are Texas forms approved through a Texas Department of Insurance bulletin. Other states handle cosmetic roof exclusions under their own rules and forms, and nothing described here should be assumed to apply outside Texas.