Philadelphia Indemnity Insurance Company filed updates to its Actual Cash Value Roof Endorsement in Texas on January 22, 2026. The revisions apply to new business beginning September 1, 2026, and renewals starting November 1, 2026.

The filing revises and expands the definition of cosmetic damage, clarifying that it includes spatter or splatter marks, blemishes, dents, and other surface level changes that alter the appearance of a roof but do not allow immediate water penetration or result in a failure to keep out water. The clarification is intended to narrow the circumstances under which roof damage would trigger coverage beyond cosmetic impairment.

The endorsement also explicitly excludes coverage for microfracture or microcracking of solar or photovoltaic modules installed on commercial roofs, addressing loss scenarios tied to emerging rooftop solar exposures. By carving out these conditions, the insurer is further limiting claims tied to latent or difficult to verify damage in solar systems.

A key implication flagged in the filing is valuation. The endorsement applies Actual Cash Value treatment to roof surfacing rather than Replacement Cost, which the insurer notes may result in claim payments that are significantly lower than full replacement cost. The form is optional, allowing insureds to elect the endorsement as part of their coverage selection.