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Hi,
I don't know about the loose insulation question, but we installed a whole house fan during a recent renovation project. It works nicely. The only issue that came up was a code violation, that we can't fix. Seems that we needed to find a certain relay switch that would turn the fan off if the smoke detectors came on (so that the fan would not pull more air into a situation with a fire in the house.)
We have had two electricians come to fix the problem, tried two relays, and still no luck. It was suggested that we may have to change out all the smoke detectors in the house (thousands of dollars), to find a compatible relay switch. We may have to take the fan out in order to get code compliance. Just wanted to give you a heads-up. Maybe your town doesn't have these codes.
My experience is that once you are used to air conditioned comfort, you will not use your whole house fan much. We turn ours on maybe 6 times a year. Then, when we turn it on we need to orchestrate the windows that we open according to where we are in the house. It will suck the air in from the closest window that's open, so it's not as though you can open all your windows and get a uniform breeze through all of them.
Also, when we turn it on, the dust bunnies start rolling like tumbleweed out from under some of the furniture. But I guess that's a good thing..better than having to move it to dust under it.
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