Heat and Mass Transfer
Moisture would find its way into insulation by vapour pressure unless it is prevented by

A vapour seal
Less thermal conductivity insulator
High vapour pressure
High thickness of insulation

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Heat and Mass Transfer
A steam pipe is to be insulated by two insulating materials put over each other. For best results

Better insulation should be put over pipe and better one over it
Inferior insulation should be put over pipe and better one over it
Whether to put inferior OIL over pipe or the better one would depend on steam temperature
Both may be put in any order

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