The house insurance ban on pink/blue insulation refers to exposed wall insulation, as soon as its covered with drywall, its ok. The restriction refers to the ability of flame to spread on the exposed surface. Since no one leaves the pink/blue exposed on the layout, usually covered with hydrocal or at least latex paint, its covered.
As usual, check with the people that will deny the claim.
As a side, some of you might remember the large layout that was built as a business in the Mall of America in the early 90's. Construction was going well till the fire marshal decided that all the structure had to be unistrut, a heavy duty METAL support system, similar to the metal racks at Home depot. This was before metal studs came into use on layouts. Needless to say the cost over-run forced early closure.
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