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Replacing Pipes in the Ceiling

I am remodeling an upstairs bathroom and am removing the 60+ yr old galvanized pipes located in the ceiling below. The old pipes were wrapped in several layers of newspaper and then wrapped in tar paper. Was this done to prevent condensation from damaging the ceiling?
I plan to reinstall plastic pipe and would like to know if I should insulate the pipes? Also, what type of plastic pipe will provide the best longevity for both hot and cold water? Thanks for any assistance you can provide.


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