AAA Texas Roofing Insurance Claims and the HO-145 Cosmetic Damage Exclusion: A Contractor's Supplement Guide

AAA Texas (underwritten by Auto Club Indemnity Company) handles roofing claims in Texas through a workflow that includes a specific endorsement unique to Texas impact-resistant roof policies: HO-145, Exclusion of Cosmetic Damage to Roof Coverings Caused by Hail. For Texas roofing contractors, understanding where this endorsement applies, what it excludes, and what it still covers is the single most important factor in whether an AAA Texas roof claim gets paid correctly.

This guide covers how AAA Texas handles roof claims, how the HO-145 endorsement works, what documentation separates excluded cosmetic damage from covered functional damage, and how a licensed Independent Adjuster Rep prepares a supplement that recovers the full scope of loss on qualifying claims.

Who AAA Texas Is and How They Handle Roof Claims

AAA Texas is a Texas-specific homeowner insurance line from Auto Club Indemnity Company, one of the AAA affinity insurance carriers. AAA Texas writes both the Texas Homeowners Premier Policy (Form B) and the Texas Homeowners Deluxe Policy (Form D), and they attach specific Texas Department of Insurance-approved endorsements to policies that meet specific risk criteria.

On roofing claims, AAA Texas uses Xactimate-based estimates written by field adjusters (staff or Independent Adjusters) and follows industry-standard documentation workflows. Where AAA Texas differs from many competing carriers is the HO-145 endorsement applied to policies insuring risks with impact-resistant roof coverings. If your policyholder received a premium credit for installing an impact-resistant (Class 3 or Class 4) roof, their policy likely carries the HO-145 endorsement.

What the HO-145 Cosmetic Damage Exclusion Actually Says

The HO-145 endorsement modifies Section I Exclusions on both the Premier Policy (Form B) and the Deluxe Policy (Form D) to add a specific exclusion for cosmetic hail damage to roof coverings. The key language of the endorsement, filed publicly with the Texas Department of Insurance, defines two important terms:

Cosmetic loss or damage means damage that alters the physical appearance of the roof covering but does not result in damage that allows water penetration through the roof covering, and does not otherwise result in the failure of the roof covering to perform its intended function of keeping out the elements over an extended period of time.

Roof covering means the roofing material exposed to the weather and the underlayments applied for moisture protection.

The endorsement excludes cosmetic hail damage regardless of roof type, but it explicitly preserves coverage for hail damage that does result in water penetration or functional failure.

For roofing contractors, the practical meaning of this language is that hail damage to an AAA Texas policyholder with HO-145 on their policy is only covered when the damage goes beyond cosmetic. Bruising that does not puncture the shingle, granule separation, and surface marring may all be classified by the carrier as cosmetic-only and therefore excluded.

How AAA Texas Determines Cosmetic vs. Functional Damage

Because the HO-145 exclusion hinges on whether damage allows water penetration or causes the roof covering to fail its intended function, documentation is everything. Field adjusters working for AAA Texas are looking for specific evidence that distinguishes excluded cosmetic damage from covered functional damage.

Common evidence that supports a functional-damage finding includes:

• Puncture or penetration through the shingle. A hail impact that drives through the fiberglass mat and exposes the underlying felt or decking is not cosmetic. Photographic evidence of penetration, ideally with the shingle pulled back or a sample shingle showing the back side, is the strongest evidence.
• Crack or fracture through the shingle substrate. A crack that extends through the mat, not just through the granule surface, supports functional damage.
• Loss of matrix or sealant compromise. Damage that has compromised the shingle's sealant strip or adhesion is evidence of functional failure rather than cosmetic surface damage.
• Collateral evidence of water intrusion. Interior ceiling staining, attic decking water marks, or insulation water damage traceable to the storm event provides independent evidence that the roof covering has failed its intended function.

Evidence that the carrier typically classifies as cosmetic-only includes:

• Surface bruising where the mat remains intact
• Granule displacement or separation
• Dents in metal flashing or vents that do not compromise water-shedding function
• Surface marring or scuffing

What This Means for an AAA Texas Roofing Supplement

For roofing contractors working AAA Texas claims, the HO-145 endorsement changes the supplement strategy in several important ways.

Documentation has to prove functional damage, not just impact count

On a non-HO-145 claim, a test square showing 8 or more hail impacts per 100 square feet typically supports full slope replacement. On an HO-145 claim, impact count alone is not enough. The supplement has to document that some of those impacts produced functional damage, not just cosmetic bruising.

Back-side shingle photographs are critical

The single most powerful piece of evidence on an HO-145 claim is a photograph of the back side of a damaged shingle showing penetration through the shingle mat. On any Texas roof claim where HO-145 may apply, a roofing contractor should plan to pull sample shingles during initial inspection or tear-off and photograph them from both sides with a scale reference.

Interior damage documentation raises the value

If the same storm event produced interior water damage (ceiling staining, attic decking saturation, drywall damage), that collateral evidence strongly supports a functional-failure finding on the roof covering. Interior photos become part of the roofing supplement, not a separate claim.

Verify HO-145 is actually on the policy

Not every AAA Texas policy carries HO-145. The endorsement is attached only to policies that received a premium credit for impact-resistant roof coverings. If the policyholder does not have an impact-resistant roof and did not receive the credit, the HO-145 exclusion may not apply to their claim. Verifying the endorsement schedule on the declarations page is step one on any AAA Texas claim.

How a Licensed Independent Adjuster Rep Team Handles an AAA Texas Supplement

At IA Solutions, every supplement written for an AAA Texas claim is handled by a licensed Independent Adjuster Rep with field adjusting experience in Texas. Our IA Reps are 1099 subcontractors, licensed in Texas, and trained specifically in the documentation standards needed to satisfy HO-145 when it applies.

The typical workflow for an AAA Texas claim looks like this:

1. Carrier document review. We review AAA Texas's original estimate and any notes disclosed on the claim document for noted issues or policy limitations that may affect what can be supplemented (for example, whether HO-145 is listed on the declarations page, noted exclusions, or coverage limits AAA Texas has applied). This avoids submitting items AAA Texas has already documented as excluded, or allows us to provide the appropriate documentation for AAA Texas to extend coverage when plausible.
2. Documentation audit against HO-145 criteria. If HO-145 applies, we audit the contractor's photos and sample shingles for evidence of functional damage (penetration, crack through mat, sealant compromise, interior damage). Gaps are identified and the additional documentation needed is specified.
3. Xactimate write-up. The supplement is written in Xactimate using the current monthly market price list for the Texas loss zip code, with proper line item selection, correct labor and waste modifiers, and applicable GC O&P where trade count and severity support it.
4. Cover letter and submission. The supplement is submitted with a technical cover letter that documents the functional damage evidence and the specific reason each line item is being added. The cover letter does not interpret policy coverage or provide policy advice, which stays inside the scope of what a licensed Independent Adjuster is permitted to do.
5. Follow-up. The IAS Rep handles discussions with AAA Texas's adjuster, provides any additional documentation requested, and coordinates additional inspection requests or final invoice requirements needed to release depreciation.
6. Handoff if needed. If the claim requires further dispute beyond what a supplement can resolve (for example, a policy coverage dispute over whether HO-145 applies correctly to the specific damage), we provide the complete documentation package to the Appraiser, Public Adjuster, or Attorney the homeowner or contractor chooses to use.

Common Supplement Opportunities on AAA Texas Roof Claims

When HO-145 does not apply, or when functional damage is properly documented on a claim where it does apply, AAA Texas supplements typically address the same categories that show up on any Texas hail claim. These include:

• Full slope or full roof replacement (when damage meets threshold)
• Code-required items (synthetic underlayment, drip edge, ventilation upgrades, decking thickness)
• Starter strip and hip/ridge caps
• Step flashing, counter-flashing, chimney flashing, skylight flashing
• Pipe jacks, boots, and collars
• Valley metal
• Ventilation upgrades for code-required ratios
• Steep charges (7/12 and above) applied correctly
• Two-story charges where applicable
• Labor minimums and difficult access surcharges
• GC O&P (10% overhead plus 10% profit) when trade count and severity support it
• Interior damage line items when the storm produced water intrusion

Special Texas Considerations

Texas has specific statutory and regulatory factors that affect AAA Texas roof claims beyond HO-145. Some of the biggest:

• Wind uplift zones along the Texas coast require additional fastening patterns that are not always included in initial estimates
• Permit requirements vary by municipality and are recoverable when documented
• HAAG-based damage identification is a common standard carriers reference, which lines up with the kind of documentation a licensed IA Rep is trained to produce
• Matching statutes at the state level affect what aesthetic replacement can be included on a claim

For a complete reference on Texas-specific supplement considerations, see our Texas location page and our state-by-state roofing code requirements guide for 2026.

Checklist for AAA Texas Supplements

Before submitting a supplement on an AAA Texas claim, verify the following:

• [ ] Declarations page review. Verify whether HO-145 is listed as an attached endorsement.
• [ ] Licensed IA Rep writing the supplement (not a generic estimator)
• [ ] U.S.-based team. Every IA Rep lives and works in the United States. Many competitors outsource estimate writing and follow-up calls overseas to people with no hands-on U.S. construction experience or practical understanding of how U.S. insurance policy and Texas carrier workflows operate.
• [ ] Back-side shingle photographs documenting functional damage (critical when HO-145 applies)
• [ ] Interior damage photographs if the storm event produced water intrusion
• [ ] Test squares on multiple slopes with impact count and damage characterization
• [ ] Roof diagram with measurements and damage notations
• [ ] Current Xactware price list matching the Texas loss zip code
• [ ] Code references for any code-upgrade items
• [ ] Cover letter documenting functional damage evidence and the reason for each added line item
• [ ] Appraisal / Dispute / Disputed Claims Handoff Policy. If HO-145 interpretation is disputed and the claim needs to escalate, your supplementing partner should be willing and able to provide all documentation to the Appraiser, Public Adjuster, or Attorney required to further dispute the claim.

Authoritative Resources for AAA Texas Policyholders and Contractors

The Texas Department of Insurance publishes all approved policy forms and endorsements, including the HO-145 exclusion language. Policyholders and contractors can look up specific form numbers there. The International Code Council maintains the public IRC and IBC code library that drives most supplement line items, with Texas-specific amendments published through the Texas Department of Licensing and Regulation.

The Bottom Line on AAA Texas Roofing Supplements

AAA Texas roofing claims can be fully recoverable even with HO-145 on the policy, but only when the documentation clearly distinguishes functional damage from excluded cosmetic damage. Contractors working with a licensed IA Rep team that understands Texas-specific endorsements, HAAG-based damage criteria, and proper back-side shingle documentation recover the full scope of loss on qualifying claims. Contractors submitting generic supplements without HO-145-aware documentation often see claims denied or underpaid.

If you are a Texas roofing contractor with an AAA Texas claim that you suspect was denied or underpaid on cosmetic damage grounds, reach out to our team. We will review the policy, the claim documentation, and the photo evidence at no cost and tell you whether a supplement can recover additional funds or whether the claim needs to escalate to a Public Adjuster or Attorney.