IInsulation material is generally used for preventing heat loss from heat transport fluids, and water absorption severely reduces the insulation property. The purpose of this study is to evaluate the amount of water absorption supplied by the pouring method and spraying method, to investigate the effects of water absorption on the thermal conductivity of an insulation material, and modeling the relation between water absorption and thermal conductivity. E-glass, a kind of glass fiber, and HYPERLITE, mainly composed of pearlite, are selected, to compare hygroscopic and insulation properties. E-glass is found to have much higher water absorptivity, compared to HYPERLITE. The thermal conductivity of the water-absorbed E-glass is increased by more than 150%, compared to that of no absorption, while variation of the thermal conductivity of HYPERLITE with water absorption is insignificant. A three-stage model of water absorption for thermal conductivity is developed, and the modeling results are found to be in good agreement with the experimental data.