The insurance industry, which deals most directly with fire losses, "Has completely eliminated the fire insurance differential for wood shingled homes." Following New York in 1940, 40 states have eliminated the higher fire insurance rates previously charged on dwellings with wood roofing. However, in some communities within certain states, higher rates may occur as a result of climatic conditions. For example, the premium for earthquake insurance vary from state to state, as well as certain localities within individual states.

Insurance companies, which base their rates on statistics, must be capable of supporting any rate increase on facts. However, manufacturers of alternative roofing products have been known to lobby legislators, fire departments and the insurance industry at large. The result has often been the creation of hysteria and misinformation due to incorrect, prejudicial and unsubstantiated statements made by self appointed authorities within the industry and news media.