A:Answer Hi Dave, I just installed mine yesterday and had the same question about this insulation piece as I could not remember exactly how it was installed. I believe that I figured it out and am including pictures of it installed. The area with multiple levels of cutouts fits over the water supply line area and the other end with just one large cutout fits in above the electrical junction box. On mine, this means that the side of the insulation pad with "NOISELITE" printed on it is facing outward (visible when installed), but the text is upside down. Hope this helps!