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How do you make this compliant? [see photo]

I have noticed in your pictures of plumbing that the hot pipe is not insulated.
 
I have noticed in your pictures of plumbing that the hot pipe is not insulated.

R403.5.3Hot water pipe insulation (Prescriptive).​

Insulation for hot water pipe with a minimum thermal resistance (R-value) of R-3 shall be applied to the following:
  1. 1.Piping 3/4 inch (19.1 mm) and larger in nominal diameter.
 

R403.5.3Hot water pipe insulation (Prescriptive).​

Insulation for hot water pipe with a minimum thermal resistance (R-value) of R-3 shall be applied to the following:
  1. 1.Piping 3/4 inch (19.1 mm) and larger in nominal diameter.
California doesn't have a section R403.5.3 but California has the same rule somewhere else.
 
Getting harder in 2021

N1103.5.2(R403.5.2)Hot water pipe insulation.​

Insulation for service hot water piping with a thermal resistance, R-value, of not less than R-3 shall be applied to the following:
  1. 1.Piping 3/4 inch (19 mm) and larger in nominal diameter located inside the conditioned space.
  2. 2.Piping serving more than one dwelling unit.
  3. 3.Piping located outside the conditioned space.
 
$ = $

Rembo, what do the plans require ?.........If the sheet type
insulation is what is required, then have the plbg. contractor
remove their piping, have the full, "non-hacked up" sheet
of insulation applied to all areas of the wall, then have
the plbg. contractor to install their piping in a compliant,
"non-lazy manner", and then have another inspection
performed to verify the re-do.


$ = $
 
$ = $

Rembo, what do the plans require ?.........If the sheet type
insulation is what is required, then have the plbg. contractor
remove their piping, have the full, "non-hacked up" sheet
of insulation applied to all areas of the wall, then have
the plbg. contractor to install their piping in a compliant,
"non-lazy manner", and then have another inspection
performed to verify the re-do.


$ = $
There is no room behind the drywall for insulation and the pipe.
 
$ ~ $

The furring strips could be notched if done properly,
by someone who actually cares about the work \ project.
Then install nail guards over the notched areas.
Not the typical "wood butchering" plumbers.


$ ~ $
 
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It's not which is why we don't make a big deal about it. The main problem is that the block gets so hot, it heats the cold water.
I have encountered a heating issue with pipe in attics and on the exterior of the building. It can be significant. In your case the furred walls limit your choices. A thermal break might help. What do they do to mitigate the problem?

If the CMU gets that hot why is there not a better insulation method?
 
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The water down there is already hot right out of the ground.
Hurricanes, alligators, pythons, bugs the size of dinner plates, more lightning strikes than anywhere else on Earth and now this…. The average Florida H/O insurance policy is $6000 for a reason.
 
If the CMU gets that hot why is there not a better insulation method?
There is. It's called framing the inside wall and not just using PT furring strips. High-end homes definitely use metal framing on exterior walls but the other 98% of the homeowners get furring strips.
 
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