Potholes Suck!
Potholes are expensive and municipalities do not like to cover the property damage, neither do insurance companies....
You should add the feature to report a pothole and send it to the county/state responsible.....this will help people avoid rim damage (like we did to the tune of ~$400) and so that municipalities can't deny the claim of damage with the lame excuse that "they didn't know" like Winston-Salem, NC did to us...
Waze would save so much money for their users!

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Jorrit Schreuder commented
Come to Ukraine! Here potholes are aplenty AND often reported in Waze.
It's a feature that I love in Waze and use myself.
You can report potholes under "Hazard", "On road"; select "Pothole"...