Cosmetic Hail Damage and HO-145: What TDI Says

The short answer

If your East Texas homeowners policy carries a credit for an impact-resistant roof, you may also have signed Endorsement HO-145—Exclusion of Cosmetic Damage to Roof Coverings Caused by Hail. Texas Department of Insurance Commissioner's Bulletin B-0030-98 adopted that optional endorsement (and dwelling-form counterpart TDP-022). Cosmetic hail damage means damage that only changes appearance and does not let water through or stop the roof from keeping out the weather over time. Functional hail damage that allows water penetration or failure of the roof covering remains covered under the endorsement language TDI published. Read your declarations before you assume every hail ding is a full-roof claim.

What Bulletin B-0030-98 actually set up

Opened and read for this article, B-0030-98 (April 23, 1998; effective May 2, 1998) did two related things:

1. Mandatory premium credits for residential roof coverings that meet Underwriters Laboratories UL Standard 2218 impact-resistance classes (with territory-specific credit tables in the bulletin).
2. Optional HO-145 / TDP-022 endorsements that exclude cosmetic hail damage to roof coverings—but only on risks that are eligible for and receiving the impact-resistant roof credit.

Key consumer protections in the bulletin's endorsement rules:

• HO-145 must be signed by the insured before attachment (or the insurer must keep a signed copy on file); otherwise the endorsement is void.
• Insurers must inform consumers that cosmetic loss may be excluded if they replace with a hail-resistant covering and take the credit.
• If you are eligible for the credit but decline to sign HO-145, the insurer may offer the policy without applying the roof-covering credit.

TDI's newer consumer tip page on insurance and your roof still reminds Texans to ask about replacement cost vs actual cash value, wind/hail deductibles, and discounts for stronger materials—separate conversations from cosmetic vs functional hail damage.

Cosmetic vs functional—in plain language

From the HO-145 text attached to B-0030-98:

• Not covered: cosmetic loss or damage from hail that only alters physical appearance.
• Still covered: hail damage that allows water penetration through the roof covering, or that causes the covering to fail to keep out the elements over an extended period.
• Roof covering in the endorsement includes the weather-exposed material, underlayments for moisture protection, and flashings required in a roof-covering replacement.

Granules missing, light surface marks, or color changes may be argued as cosmetic on some policies with HO-145. Soft spots, active leaks, cracked mats that open a path for water, or failure of the covering to perform are the functional side. Your adjuster and your own photos matter; the endorsement language is the starting point, not a substitute for an inspection.

Practical steps for East Texas owners

1. Pull your declarations page and endorsement schedule—look for HO-145, TDP-022, or a carrier-specific cosmetic-hail form.
2. Confirm whether you are receiving an impact-resistant / UL 2218 (or TDI-approved equivalent) credit.
3. If you signed a cosmetic exclusion, keep a copy of the signed form.
4. After hail, photograph close-ups and any interior stains or active leaks before temporary repairs.
5. Ask the insurer in writing whether the claim is being limited under a cosmetic endorsement—and what functional damage they found.
6. Get contractor estimates that separate appearance-only items from water-intrusion repairs.
7. For broader claim timing and contractor caution, use TDI's roof tip page and our earlier posts on three bids / no deductible waiver and replacement cost vs ACV.

What this post is not promising

• East Texas Roof Quotes does not invent warranties, prices, or storm guarantees.
• Having impact-resistant shingles does not automatically mean HO-145 is on your policy—you must check.
• Cosmetic exclusions do not erase every hail claim; functional damage language still applies when water intrusion or covering failure is present.
• This is educational TDI bulletin language, not a claim-handling service or legal advice.

Bottom line

Impact-resistant roof credits and optional cosmetic-hail endorsements travel together under TDI Bulletin B-0030-98. Know which you signed before the next East Texas hail cell.

Need a local quote? Request one through East Texas Roof Quotes. Have your declarations page ready if you already know you carry an impact-resistant credit.