Generally, in freezing climates there should be no insulation between a water pipe within an exterior wall and the interior wall surface.
Ideally there should be a more or less (empty) triangular space with no insulation around the pipe, as wide at the interior wall as the pipe is deep behind. For a pipe that went straight through the rim joist and exterior wall to a hose bibb, the empty triangular or conical or sideways pyramid space would go all the way to the rim joist. Batt insulation would be run behind pipes in the wall with a triangular wedge section cut out for the pipe if desired to make the batt fit in the space better. Fill insulation should not be used around pipes in the wall or joists.
Ideally there should be a more or less (empty) triangular space with no insulation around the pipe, as wide at the interior wall as the pipe is deep behind. For a pipe that went straight through the rim joist and exterior wall to a hose bibb, the empty triangular or conical or sideways pyramid space would go all the way to the rim joist. Batt insulation would be run behind pipes in the wall with a triangular wedge section cut out for the pipe if desired to make the batt fit in the space better. Fill insulation should not be used around pipes in the wall or joists.
