Watch this video for home insulation guide on water heaters, pipes and attic spaces insulation. Adding insulation is an inexpensive way to greatly reduce energy costs.
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For what you will pay in material for those batts. You can usually find a contractor to blow in fiberglass which will fill voids and provide a better insulation. Basically ignore this video unless your house only has about 350sqft. of attic floor space or you really like to waste a day with itchy crap to result in a lesser quality job for the same price you can hire it done and they will be in and out in less than an hour!