How Oil Price Volatility Is Reshaping Property Claims Costs by Region

July 28, 2026 / 3 min read

Which construction materials are most exposed to oil price increases?

Among the many economic sectors affected by rising oil prices, certain materials commonly used in home construction are particularly reliant on petroleum in their manufacturing. To identify the categories of petroleum-based materials with the largest financial impact on property claims, Verisk analyzed the past five years of property insurance claims data to normalize for weather pattern variations. Three materials categories showed the most significant impact:

Flooring, which includes synthetic carpets, vinyl, and laminate materials
Roofing, which includes materials such as composite shingles, bitumen, elastomeric coverings, and waterproofing materials
Vinyl siding

The regionality of petroleum-based claims costs

Verisk analysis found these main categories of petroleum-based products tend to dominate certain areas of the United States as a result of regional differences in home building practices and the dispersion of property claim perils. Carriers should account for these regional variations alongside changes in climate and weather patterns as they evaluate their policies in force.

2623962_Oil-Materials_Visualize_Materials by County

For example, vinyl siding material claims dominate in the Midwest because vinyl siding is commonly used, but also because hail events are prevalent. Due to the nature of vinyl siding as opposed to asphalt roof shingles, for example, after a single hail hit, vinyl siding may require an entire elevation of a house to be replaced compared with a few shingles of roofing. Additionally, because it was done on historical claims data, Verisk’s analysis was able to account for complex policy holder reporting behaviors and decision making. These factors result in a higher impact from the vinyl material category in the Midwest although it’s important to note that these areas also experience significant roofing losses as well.

Wind and hail drive the majority of petroleum-linked claim costs

2623962_Oil-Materials_Visualize_Types of Loss

Wind and hail accounted for roughly half of all property claims in the past five years, making them the primary drivers of exterior claims, and by extension, petroleum-linked claim costs. As such, areas in the United States with lower convective storm activity, such as the West Coast and New England—or that may have more stringent building practices regarding material selection such as using Class 4 shingles or metal roofing in hail-prone areas—see a greater prevalence of interior vs. exterior claims and therefore proportionally larger claims effects from synthetic flooring material prices.

Highest RCV Per Material Category by State:

Material Category	State	5 Year RCV Total
Petroleum-Based Roofing	Texas	$6.6b
Synthetic Floor Coverings	Texas	$631m
Vinyl Siding	Missouri	$166m

How Xactimate captures the full cost impact of oil price changes

This unique analysis uses Xactimate^® pricing data, which encapsulates not only the material prices but also the labor costs for repair and installation; increased transportation costs that may be passed on to carriers/consumers; differences between overhead and profit practices among the trades represented; and more. This holistic view allows for a more comprehensive understanding of the regionality behind these petroleum-intensive materials in relation to the complex dynamics of oil prices.

As oil price volatility continues, understanding where petroleum-driven costs concentrate geographically and by material type will be critical for accurately modeling claim severity and anticipating loss trends.

Verisk’s business intelligence and pricing teams are here to partner with you to interpret these trends, refine severity assumptions, and navigate oil driven cost volatility with confidence.

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