A friend of mine just told me he installed a SS flexible liner in his masonry chimney without insulating it (insulation didn't come with his kit). He has an insert he will be installing in his fireplace. I am not familiar with the layout, so this is all I know right now. I didn't say anything yet, but I have read on this site about insulating liners. I searched the archives and it appears like you can install one uninsulated (in certain climates), but insulation is better for maximizing draft and reducing creosote. He already installed it, so, unless there are real issues to be concerned about, I should probably leave well enough alone. BTW, he lives on Long Island, so it doesn't usually get the kind of cold many of you are used to. Opinions are appreciated.