Building construction has gone through tremendous changes during the last decade. With the improvement in quality of life, earnings, living style, the building construction methodology and construction materials have been modified to suit the life style of people. The art of living has changed and human comfort is given a lot of importance. With the increase in electronic gadgets in the houses along with air conditioning system, energy consumption becomes enormous. It is in this context of energy consumption and human comfort, the function of Insulation in buildings has become an important construction element. Thermal insulation is directly linked to human comfort and reducing energy consumption. Insulation system is a composite of materials and endeavours provisions of how it is applied with various holding systems to provide a building envelope. Thermal insulation is a combination of insulation and ancillary materials which creates a barrier to the flow of heat and cold from the environment to the inside of buildings. The insulation after application on roof and wall needs to be properly covered with a permanent finishing arrangement. Insulation is applied both from inside the building as well as on the external side of the building. When insulation system is applied on external side the effect is much more because insulation then covers the basic construction elements of roof and wall. This way the Reinforced Cement Concrete roof and Brick wall is never exposed to direct environment heat rays or cold wave. Whereas in the case of application from inside it has to be properly protected by solid barriers because the roof and wall will be in direct contact with human being.