Thoughts

Looking for your thoughts on wrapping furnace & water heater flue pipes.
Thanks.

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Through the attic… in cold areas of the country… done properly with the proper materials… yes.

Is this single wall pipe used as a chimney? Totally wrong.

Insufficient clearance from combustion.
Inappropriate, incorrect, unapproved chimney or vent.
If underneath the insulation is a B vent or similar approved gas appliance vent, insulation is not required.
If the appliance being vented is not in the attic space in the pic, what method was used to penetrate the ceiling?

Only PVC/high efficiency piping should be insulated…

This article is regarding chimneys, but the same principle applies when taking condensation into consideration…
http://www.rockfordchimneysupply.com/chimney_liner_insulationQA.php

Very wrong if it is single wall and what I see is an added expandable piece of flue pipe at the top. None of this is approved here.
I also see a light coming from below the flashing and you never see this either in a proper boot installation.