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Re-sheathing old house? (approx 1846)

I'm looking to put up new siding on our house and I'm not sure if it will be neccessary to resheath. I currently have wood shingles (woodpecker damage occuring daily) and have board sheathing as well as blown-in insulation that I believe was installed in the 70s 80s. I see my scenario as
1. Strip old shingles, apply new vapor barrier and then new siding over old sheathing
2. Strip old shingles, old board sheathing and insulation then new insulation, sheathing and siding.

Obviously there is a cost associated with these two. Half the insulation in the exterior walls got wet two winters ago with icedams. I do not know how bad the damage was(mold and such).

My question is: what is the likely hood that I will end up resheathing. Would is be possible to remove moldy insulation(if present) and then add new insulation and siding withoput having to resheath with plywood.

MLB Construction
Re: Re-sheathing old house? (approx 1846)

having the old board style sheathing is a big plus in this scenario. once you get the house stripped you can replace damaged areas of sheathing with new. also, you can cut out some areas where you thought you might have wet insulation, reinsulate those areas and put the same board sheathing back in place. also you can, usually, see through alot of the gaps between the boards and you should be able to tell where there is insulation missing. it's pretty rare for blown in insulation to get 100% coverage. where you see no insulation you can remove a board or two, insulate and reinstall the same boards. then wrap with tyvek and put up your new siding.

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