Naturally, pipe insulation is most important in areas where there is the potential for pipes to freeze and burst. The cost of both piping and insulation is tiny relative to the damages when a pipe breaks. While it is obvious that outdoor pipes (under the porch, etc) need to be insulated, other pipes can still freeze even if they run in a temperature-regulated part of the house. Things happen, electrical power goes down for several hours, or you go on vacation and don’t expect the temperature to drop as much as it does. Proper pipe insulation can reduce, if not eliminate, the chance of your pipes freezing.