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The exterior of my home currently comprises a thin layer of stucco applied over some white polystyrene insulation (1" maybe) which is presumably nailed to the exterior sheeting.

There are two things I would like to do, improve the insulation and change the exterior to either siding or shingles (preferably cedar shingles). The stucco is in good shape apart from a couple of nicks here and there and one area under the patio doors (see attached picture, which also shows thickness of insulation) but the doors will be replaced in the spring and that area will either be replaced by steps or a small deck.

I was planning on taking off the internal drywall/wallboard mix, replacing the insulation in the walls, assuming there actually is some, (its an old house and you can never be sure round here) and then adding new drywall. That should take care of the insulation part. But for the outside I was wondering if I could shingle right over the stucco or whether I would have to remove it and the polystyrene insulation first, in which case I might need to rethink my indoor insulation plans.
 

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What you have is known as EIFS (Exterior insulation finishing system) which is a synthetic stucco.

I’ve seen people install siding over the top of it but I wouldn’t recommend it. I’ve seen to many issues with moister being trapped behind it and rotting walls. I’ve tore off a few houses of the stuff to find extensive damage. Not to say that you have those issues but I don‘t trust it.

Another issue with going over it is it’s very difficult to maintain proper flashing details.

Removing drywall to install new insulation will quickly let you know if you have moister problems.
 

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Stucco not going to hold nails and it the grade looks far to close to where the siding would have to be.
Can you take a picture that's not so close up?
 

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It’s not stucco Joe, look at the first picture. You can defiantly nail through it and get to wood.

You almost need to encase the house in a bubble when tearing it off. Any wind at all and those poly beads and chunks end up are all over the neighborhood. :huh:
 
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