This is where exterior insulation becomes more significant.
Rigid insulation is available in several forms, including EPS, XPS, and polyisocyanurate. Depending on the material and product, rigid exterior insulation can provide substantially more thermal resistance per inch than thin fanfold.
XPS stands for extruded polystyrene. It is one type of rigid foam insulation, not a separate insulation category.
For a familiar example, Owens Corning FOAMULAR XPS is rated at approximately R-5 per inch.
That is a much different insulation upgrade than thin fanfold.
Rigid foam also creates a continuous insulating layer across the wall framing, helping reduce thermal bridging through the studs.
The catch: You are making the wall thicker
This is the part that is easy to overlook.
If you install one inch of rigid foam on the exterior of your house, the new exterior surface of that wall has moved outward by approximately one inch.
That affects everything that meets the wall:
- Windows
- Doors
- Exterior trim
- Flashing
- Fasteners
- Other wall penetrations
The foam may be great insulation, but the foam itself is not the whole project.
Those surrounding details still need to be properly integrated so the finished wall drains water correctly, looks right, and stays secure.
That does not mean rigid foam is a bad option.
Quite the opposite.
If you are replacing siding and want to add meaningful year-round continuous insulation, rigid foam can be a very good opportunity.
You just have to plan for the additional wall thickness.

