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Insulation can serve many purposes, the obvious being that you want to take advantage of the opportunity to increase your home's R-Value and comfort factor while doing your siding project. With a polystyrene construction this board does not absorb water, is not a food source for mold and will retain its insulating properties over time. Insulation is also used for renovations when required to layer over an existing stucco or wood exterior. What the insulation does is create a flat working space to install your new exterior finishing.

Another form of exterior insulation is House Wrap, this prevents outside water from entering your walls and to seal your home keeping the outside air where it belongs.