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Cellulose insulation is made from old newspapers that are shredded and then treated with chemicals to be noncombustible and mold-resistant. Easy to install in attics when a blower unit is used, cellulose can also be blown into wall cavities through holes drilled in siding or interior wallboard to improve on exterior wall insulation. Cellulose has a few drawbacks: It absorbs more moisture than fiberglass, and can take a long time to dry out after wetting. Like all loose-fill insulation, it can blow around if disturbed.