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The Hidden Cost of Corrosion Under Insulation

The Hidden Cost of Corrosion Under Insulation

By Features and Benefits, Insulation Solutions, Pipe Insulation, Sustainability, Tank InsulationNo Comments

The Hidden Cost of Corrosion Under Insulation

If you operate an industrial facility that transports fluids or gases through piping, corrosion under insulation (CUI) is a real risk. CUI occurs when water penetrates the insulation and sits in contact with metal piping or equipment for an extended period, creating the ideal conditions for rust and oxidation. Collectively, CUI issues are responsible for billions of dollars in maintenance and replacement costs across industries every year, as well as wasted energy consumption and disrupted services and production. 

At Dragon Jacket Insulation, we’ve approached the CUI problem by redesigning industrial insulation from the ground up, rethinking how insulation can accommodate modern industrial applications and avoiding the problems that traditional insulation presents. The result is a product composed of a closed-cell foam core coated with a durable and moisture-impermeable polyurea coating. Our monolithic clamshell design clamps over pipes and fittings with a simple band, obviating the need for separate jacketing and sealing, and eliminating the weak points that create the conditions that lead to CUI.

 

Why Traditional Insulation Systems Fail

Traditional multi-layer insulation systems consist of a porous insulation core (generally, fiberglass, mineral wool, or foam) covered by separate metal (tin or aluminum) jacketing, and sealed with fasteners and tape. In theory, this bulky system creates a moisture barrier that protects your underlying equipment. However, in practice, every joint, seam, and fastener is a potential failure point.

Over time, weather, vibration, impact, and thermal cycling open these seams or cause tears to develop. Water infiltrates. Once insulation becomes saturated with water, the trapped moisture has nowhere to go, and sits against your pipes. The sources of moisture are everywhere:

  • Rain, snow, and humidity in outdoor systems
  • Condensation from chilled or cryogenic lines in interior and exterior systems
  • Leaks from adjacent process systems
  • Washdowns and overspray during maintenance

The end result is moisture intrusion and corrosion of pipes hidden beneath the insulation layers. When wet or damp, the insulation loses R-value, which can accelerate condensation and, consequently, corrosion. However, in most cases, corrosion is undetectable because the jacketing hides the damage until leaks, failures, or costly shutdowns occur.

Ultimately, the problem is not just compromised or inefficient insulation. It is the degradation of the underlying structure, potentially shortening the lifespan of the pipes and fittings by years.

 

A Better Way: Dragon Jacket’s Moisture-Impermeable Design

Dragon Jacket Insulation was engineered to solve the moisture problem permanently. Each section is a single-piece clamshell: a high-R-value (R-6.25 per inch) closed-cell foam core fully encapsulated in a seamless polyurea shell. The clamshell closes tightly over piping, and is secured by metal bands. Unlike fiberglass or mineral wool, Dragon Jacket’s closed-cell core doesn’t absorb or wick water. Because there are no seams, joints, or separate jackets, there’s nowhere for water to enter; the seamless, monolithic design blocks water from every angle. The result is a truly waterproof insulation system that maintains thermal integrity and keeps metal components dry for decades.

 

UV-Resistant, Impact-Resistant, and Built to Last

CUI prevention isn’t solely about keeping water out. The system needs to maintain that protection through every environmental challenge. Dragon Jacket’s polyurea shell is UV-stable, impact-resistant, and chemically inert. That means that, whether exposed to driving rain, coastal salt spray, or freeze/thaw cycles, Dragon Jacket maintains its integrity and performance. Even after years of direct sun exposure or mechanical impact from tools or debris, the outer shell remains intact, continuing to seal out moisture and protect the pipe beneath.

 

Faster Installation, Easier Maintenance

Dragon Jacket arrives prefabricated to exact specifications, either using 3D scanning software or schematics, ensuring a perfect fit. Installation is straightforward:

  • Clamshell the pre-formed section around the pipe.
  • Secure it with stainless steel bands or other approved fasteners.

No adhesives, coatings, or sealants are required. When maintenance is needed, crews can remove a section and reinstall it with a new band when inspection or maintenance is complete; there is no need to replace the insulation. That reusability saves time and cost.

 

Proven Cost Savings Through Long-Term Protection

Repair and replacement costs due to CUI easily dwarf the initial cost of insulation. You can protect your investment by dramatically reducing the risk of water intrusion. Dragon Jacket delivers measurable savings through:

  • Reducing CUI risk: No trapped moisture, no corrosion
  • Stable R-value: Insulation performance remains consistent for decades
  • Reduced maintenance: No patching, recoating, or replacement
  • Extended service life: Typical lifespan exceeds 20 years in outdoor environments

For maintenance managers and engineers, the value is clear: a moisture-impermeable system that is purposely made to prevent failure before it starts.

 

Insulation, not Moisture, is the Real Problem

If corrosion under insulation is a recurring line item or treated as an acceptable risk in your maintenance budget, it’s time to rethink your insulation system. Dragon Jacket’s engineered, moisture-impermeable system provides lasting protection, consistent thermal performance, and the peace of mind that comes with knowing CUI isn’t lurking somewhere beneath the surface of your insulated piping. The technology behind that confidence translates into better bottom line performance for your entire operation in lower initial costs, decreased repairs, and, most importantly, pipes that don’t experience CUI.

Contact Dragon Jacket Insulation today to request specifications, consult on a project, or obtain a cost-benefit analysis. Discover how Dragon Jacket’s true moisture impermeability can reframe your expectations of how insulation can support your operation.