Cosmetic Damage Waiver on a Roof: Texas Homeowner Guide

By Fareed Tulbah, owner of Caden Roofing · 8,000+ roofs inspected · Last updated October 2026

57%

Texas insurers with a cosmetic damage exclusion on file with state regulators, the highest share of any state

Source: ZestyAI, 2026

Up to 35%

The Class 4 roof discount some Texas insurers advertise. The waiver is often the price of that discount.

Source: Texas Farm Bureau Insurance

$3,500+

Average Texas homeowners premium in 2026, up from under $2,000 in 2020

Source: Texas Governor’s Office, Sept. 2026

What is a cosmetic damage waiver?

A cosmetic damage waiver is an add-on to your homeowners policy that lets your insurance company refuse to pay for hail or wind damage that changes how your roof looks but not how it works. In Texas, it’s usually tied to the discount you get for an impact-resistant roof. Sign it, and dents, dings and chipped shingles may not be covered, even after a major hail storm.

Is a marring exclusion the same as a cosmetic damage waiver?

Yes. “Marring exclusion,” “cosmetic damage waiver,” “cosmetic loss limitation” and “hail damage waiver” all mean the same thing. Marring is surface damage: dents, pits and scuffs. Different insurers use different names for the same exclusion.

What counts as cosmetic damage vs. functional damage on a roof?

Cosmetic damage changes the look of the roof. Functional damage changes what the roof can do. Texas regulators define cosmetic damage as damage that alters the appearance of the roof covering but doesn’t let water through and doesn’t stop the roof from keeping out the elements over an extended period of time.

That last phrase matters. A roof that’s wearing out faster because of hail isn’t keeping out the elements over an extended period of time.

Does a cosmetic damage waiver apply to Class 4 shingles and metal roofs?

Yes. In Austin, cosmetic damage exclusions show up on:

Class 3 and Class 4 impact-resistant shingle roofs
Standing seam metal roofs
Gutters, vents, flashings, valley metal, drip edge and other soft metals on any roof

The exclusion was originally built for homeowners who installed an impact-resistant roof and took the insurance discount for it. Insurers now attach their own versions more broadly.

Are gutters, vents and flashings covered under a cosmetic damage waiver?

Often not. Insurance adjusters in Austin already call dented gutters, vents and flashings “cosmetic” and pay only to detach and reset them: take the old ones off and put them back on. With a waiver, expect nothing for them.

Caden Roofing never reuses old vents or flashings on a new roof. We put the detach-and-reset money toward new ones.

Is granule loss on Class 3 and Class 4 shingles cosmetic damage?

Insurers often say so. It isn’t. Once hail knocks the granules off an asphalt shingle, that spot has already started to fail. The granules protect the asphalt from the sun, the same way gravel protects the asphalt on a commercial flat roof. Without them, the shingle can no longer do its job.

Impact-resistant shingles take a hit better than standard shingles, but they still lose granules in a big storm. With a waiver, the insurer can call that cosmetic and pay nothing.

Are hail dents on a standing seam metal roof cosmetic damage?

Dents in the panels usually are, as long as the roof doesn’t leak. Dents in the seams can be functional damage. On a metal roof, hail damage is easy to see, often from the street. With a cosmetic damage waiver, the insurer can call every panel dent cosmetic and pay nothing.

The seams are different. On a standing seam roof, the seams keep the water out. When hail dents and distorts a seam, it can open the joint or break the seal inside it. Expect the insurer to argue that a dent on top of a seam is only cosmetic. Have every dented seam documented with close-up photos.

Does the Class 4 roof insurance discount require a cosmetic damage waiver?

It can. Under Texas rules, an insurer can make the waiver the condition for the impact-resistant roof discount. When a Class 3 or Class 4 roof is installed, the roofer fills out TDI Form PC068, the Impact-Resistant Roofing Installation Form, and you give it to your agent for the discount. That form says nothing about cosmetic damage.

The waiver is a separate document. Under Texas rules, it’s void unless you sign it, and your insurer has to tell you that cosmetic damage may be excluded. In practice, it’s often one more signature in a stack of paperwork. If you decline to sign, the insurer can offer the policy without the roof discount.

How much is the impact-resistant roof discount in Texas?

It depends on your insurance company. Each Texas insurer sets its own, and a Class 4 roof earns the largest. Some Texas carriers advertise up to 35% for Class 4. Class 3 discounts are usually smaller. Ask your agent for the exact number, and ask whether getting it means signing a cosmetic damage waiver.

How many Texas insurers use cosmetic damage exclusions?

More than half. A 2026 review of the policy forms insurers file with Texas regulators found that 57% include a cosmetic damage exclusion, the highest share of any state. The same review found 82% of Texas carriers pay roofs at depreciated value as they age, and 100% use percentage-based wind and hail deductibles.

A Texas homeowner can lose on a hail claim three ways at once: a big deductible, a depreciated payout, and damage called cosmetic.

What happens when you sell a house with a cosmetic damage waiver?

You may have to fix the roof yourself to close the sale. Fareed Tulbah, owner of Caden Roofing:

“Insurance adjusters already tell Austin homeowners that hail damage is ‘only cosmetic.’ What I believe is on the horizon is worse. Many homeowners are signing a cosmetic damage waiver to get a discount on their new Class 3 or Class 4 roof without knowing it. When a major hail storm hits, they’ll file a claim and learn about the waiver when it’s denied. Those who sell will face a buyer’s inspector who calls it hail damage, an insurer that calls it cosmetic, and a roof they may have to replace out of pocket to close the sale.”

On a metal roof, buyers see the dents, and their inspector writes them up. You’ll negotiate on price or replace the roof with no insurance money. Texas seller’s disclosure forms also ask whether you’ve ever filed an insurance claim on the property, so a denied claim on a dented roof can follow the house.

How do I know if my policy has a cosmetic damage waiver?

Look at the endorsements listed on your policy’s declarations page. Watch for any of these words in a title: cosmetic, marring, appearance, hail damage waiver, cosmetic loss limitation. Texas’s original state form is HO-145; insurers may use their own version.

What should I ask my insurance agent?

Does my policy have a cosmetic damage or marring exclusion?
Did I sign one? When?
Does it cover only the roof, or gutters, vents and flashings too?
How does my policy define cosmetic damage?
How much would my premium change without it?
Is my roof paid at replacement cost or depreciated value?
What is my wind/hail deductible in dollars?

What Caden Roofing does for impact-resistant roof owners

When we install a Class 3 or Class 4 roof, we fill out TDI Form PC068 so you can ask your insurance company for the discount. We always tell homeowners to ask their agent first whether that discount requires signing a cosmetic damage waiver or marring exclusion.

After a hail storm, Caden Roofing inspects and photographs damage to the roof, the rest of the home’s exterior, and personal property.

Call Caden Roofing at (512) 364-0278.

Frequently Asked Questions

Can I get the Class 4 discount without signing the waiver?

Ask your agent. Under Texas rules the waiver must be signed by you, but if you decline it, the insurer can offer the policy without the discount.

Can I remove a cosmetic damage waiver?

Ask your agent whether it can come off at renewal and what your premium would be without it.

Does Texas require insurers to warn me about the waiver?

Yes. Texas rules require the insurer to tell you that cosmetic damage may be excluded. A 2023 bill that would have required homeowners who turn down cosmetic coverage on a metal roof to acknowledge it in writing passed the Texas House but never became law.

Does a cosmetic damage waiver mean my roof isn’t covered at all?

No. Damage that lets water in or stops the roof from doing its job is still covered. The fight is over where that line falls.

What Is a Cosmetic Damage Waiver on Your Roof? A Texas Homeowner’s Guide