It is strongly advised that you do insulate.
Insulation around fireplace flue.
As i stated in my first post vermiculite chips are the preferred method of insulating voids in around flues and serve a double purpose as they poured into the chimney a special funnel can be purchased or made tamped down firm.
It is often installed in gaps around the chimney and flue to prevent airflow that can siphon the heat away from the interior of the building.
Insulation should be tucked around all sides of the firebox and the flue.
As such it can be used to insulate a chimney.
Insulation around a gas fireplace metal chimney can catch on fire inside the walls or attic where it will continue to burn until it might be too late to extinguish it to prevent serious damage to your home.
This makes it an ideal insulation material for use in areas that experience high temperatures.
When you install your chimney liner with the proper chimney insulation your reline job creates an environment that allows your appliance to be as efficient and safe as possible.
If you are concerned that the fireplace door might be leaking cold winter air or allowing smoke into your home you can replace the seal on it.
The first step to insulating a chimney flue done when it is first made is called parging.
Remove the insulation between the joists where the flue is located to clear an area about 18 inches away from the flue on each side.
To maintain efficiency safety and to significantly reduce formation of creosote you will need to insulate the chimney liner.
Parging aids in the containment of gases from the fire whether its source is coal or wood.
Insulation inside the wall around the vent for a wall mounted fireplace is also forbidden because it can catch fire.
Apply a thick bead of high temperature caulk the flue on one.
Fiberglass insulation is naturally fire resistant.