Short answer: Texas has required insurers to offer credits for UL 2218 impact-resistant roofing since 1998, and Class 4 roof insurance discount Texas earn the largest credit. But the Texas Department of Insurance does not set the amount; each carrier does, and real-world credits typically run 10–35% off the dwelling portion of your premium. Many carriers attach Endorsement HO-145, which excludes cosmetic hail damage. Getting the credit without understanding that trade-off is how homeowners end up with a hail-resistant roof and no hail coverage.
Why this is worth real money in Central Texas
The Texas Department of Insurance reports the average annual Texas homeowners premium at $3,291, across more than 8.1 million active policies and 158 companies. Independent estimates for 2026 put typical Texas premiums between roughly $3,300 and $4,900.
It got there fast. Federal Reserve Bank of Dallas analysis found the median Texas homeowner paid 60% more for home insurance in 2024 than in 2019 — double the national increase of 30% over the same period. The pace has cooled: TDI data shows homeowners premium growth slowing from 18.7% in 2024 to 4.3% in 2025.
A 20% credit on the dwelling portion of a $3,300 premium is not a rounding error. Over a 40-year metal roof, it is real money — and it compounds with the claims you do not file.
How the credit actually works
The rating comes from a lab test, not a salesperson. UL 2218 grades roof coverings Class 1 through 4 by dropping a two-inch steel ball from 20 feet onto the material. To earn Class 4, the covering must show no tearing, cracking, splitting, or rupture. FM 4473 is an accepted alternative that fires ice balls instead. Class 4 is the top rating under both.
Class 4 is a product certification, not a material category. This trips people up constantly: not every metal roof is Class 4. The rating belongs to a specific tested and labeled assembly — panel, gauge, coating, underlayment, and deck. UL does not recognize a panel as Class 4 unless it carries the label. Ask for the manufacturer’s UL 2218 test documentation for the exact system being quoted, not a general claim that “metal is Class 4.”
TDI does not set the discount amount. The department is explicit on its roofing credits page: the amount of discount for each class of roofing material is established by the insurance company, company by company. Each carrier also decides which test criteria it accepts and what paperwork it requires. Anyone promising you a specific percentage before you have talked to your carrier is guessing.
The HO-145 catch
In the same 1998 order that created mandatory roof covering credits for UL 2218 metal roofing, the Commissioner of Insurance also adopted Endorsement HO-145, “Exclusion of Cosmetic Damage to Roof Coverings Caused by Hail,” for attachment to policies receiving those credits. Texas was first in the nation on both counts.
Here is why it matters more for metal than for anything else.
UL 2218 measures cracking and rupture. It does not measure denting. A Class 4 metal panel passes the test by not splitting — it can dent freely and still pass. That is by design; the dent is the panel absorbing energy instead of failing. So the performance characteristic that makes metal excellent in hail is exactly the damage profile a cosmetic exclusion is written to exclude.
Recent analysis of Texas carrier filings found the cosmetic exclusion built into a majority of them. And it usually is not on the declarations page in plain language — it is in the endorsement list, and most homeowners meet it for the first time at claim time.
This is not an argument against metal. It is an argument for reading your policy before the roof goes on, while you still have leverage to shop carriers. If you are still weighing materials, see our metal vs. shingles comparison.
The other thing hiding on your declarations page
Separate from the credit and separate from the exclusion: most Texas policies now carry a wind and hail deductible expressed as a percentage of your dwelling limit rather than a flat dollar amount. Typically 1–2%, sometimes higher.
On a home insured for $400,000, a 2% wind/hail deductible means you pay the first $8,000 of any hail claim. That number reshapes the entire metal-versus-shingles calculation, because a roof that does not generate claims is worth considerably more when each claim starts with an $8,000 bill.
Check three things on your declarations page: the dwelling limit, the wind/hail deductible and whether it is flat or percentage, and the full endorsement list.
How to actually claim the credit
- Confirm the rating before installation. Get the manufacturer’s UL 2218 Class 4 documentation for the specific system, gauge, and assembly being installed.
- Have your contractor complete TDI Form PC068 — the Impact-Resistant Roofing Installation Form. Most carriers require it as proof. We complete it for every qualifying system we install.
- Submit it to your agent, not just your carrier’s app. Ask for written confirmation of the credit amount.
- Ask directly whether HO-145 or any cosmetic damage exclusion is required to receive it, and what the premium difference is without it. Sometimes it is small.
- Verify it on your next declarations page. Credits are frequently processed at renewal rather than mid-term. If it has not appeared within 60 days, escalate.
- Re-shop the whole policy. A new Class 4 roof makes you a better risk to every carrier in Texas, not just your current one. This is the best leverage you will have for years.
Five questions for your agent
Copy these into an email:
- What credit will a UL 2218 Class 4 roof earn on my dwelling premium, in dollars?
- Is Endorsement HO-145 or any cosmetic damage exclusion required to receive that credit?
- What is my wind/hail deductible — flat dollar or a percentage of dwelling limit?
- Is my roof coverage replacement cost or actual cash value, and does that change with roof age?
- Do you need TDI Form PC068, and does the credit apply at installation or at renewal?
Frequently Asked Questions
How much is the Class 4 roof insurance discount in Texas?
Texas requires carriers to offer credits for UL 2218 impact-resistant roofing, with Class 4 receiving the highest credit, but the Texas Department of Insurance does not set the amount. Each insurer establishes it company by company. Real-world credits commonly run 10–35% off the dwelling coverage portion of the premium.
Does a metal roof qualify for the Class 4 discount in Texas?
Only if the specific product is tested and labeled to UL 2218 Class 4. The rating belongs to a tested assembly, not to metal as a material. Request the manufacturer’s UL 2218 documentation for the exact panel, gauge, and underlayment being installed.
What is Endorsement HO-145 in Texas?
HO-145 is a Texas Department of Insurance endorsement titled “Exclusion of Cosmetic Damage to Roof Coverings Caused by Hail,” adopted in 1998 alongside the impact-resistant roofing credits. It removes coverage for hail damage that affects the roof’s appearance but not its function. Many carriers attach it to policies receiving impact-resistant credits.
Will insurance pay to replace a dented metal roof in Texas?
It depends on your policy. If a cosmetic damage exclusion applies, a dented but watertight metal roof may not be covered, because the damage does not impair function. Dents near seams, fasteners, or coatings can sometimes support a functional damage argument. Check your endorsement list before you need to know.
What is TDI Form PC068?
It is the Texas Department of Insurance Impact-Resistant Roofing Installation Form. Your roofing contractor completes it to document that the installed roof covering meets UL 2218 impact resistance criteria, and you submit it to your agent as proof for the premium credit.
Do Class 4 shingles get the same discount as Class 4 metal?
Generally yes — the credit is tied to the UL 2218 classification, not the material. The practical difference is exposure to cosmetic exclusions, which affects metal roofs far more than shingles because hail dents metal without cracking it.
We handle the paperwork
Montgomery Roofing installs UL 2218 Class 4 systems across Greater Central Texas and completes TDI Form PC068 for every qualifying installation. We will also tell you honestly which system your carrier is most likely to credit.
Call 254-655-1024 or schedule a free inspection. See also: what a metal roof costs in Central Texas.
This article is general information, not insurance advice. Coverage terms, credits, and endorsements vary by carrier and policy — confirm specifics with your licensed agent.