Loose fill fiberglass is a broken down fiberglass, but it does not have the formaldehyde adhesives that fiberglass batts contain. It is much easier to work with because it is not itchy like fiberglass batts are. When installed, it looks like fluffy snow and is a good product because it does not settle, is water resistant and is not dusty when installed. The downside to loose fill fiberglass is that it has a lower R-value per inch than its loose fill cousin, cellulose, so the price tends to be slightly higher. It is able to get under and around canned lights, electrical wires, and other attic floor protrusions that cause rolled batt insulation to be suspended off the attic floor which is a huge no-no. Some homeowners prefer the loose fill fiberglass over cellulose because it is "cleaner" in that it is not dusty and less allergenic. Either way, you can't go wrong with cellulose or loose fill fiberglass as a low cost solution to attic insulation upgrades.
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