posted 9 years ago
Given that it looks like the ducts next to walls are the last in line from the combustion zone, the insulation there, both against walls and on floor, is probably going to be okay. How thick is the material below the ducts to the floorboards? The closer, the more hazard.
The insulation under the J-tube, no matter how good it is, is likely to transmit enough heat with long burns to be dangerous over time. (The ignition temperature of wood exposed to heat declines over time.) You might be fine for six months or a few years, then one winter your floor starts smoldering under the heater.
I think it is critical for you to take up the J-tube area and make air channels under it (space the mass up on something like widely-spaced bricks or metal channels), then put in your bottom insulation and rebuild the core with good insulation.
You wouldn't just wrap the flue in fiberglass, you would surround that with a larger sized duct. Something like a 10" wrapper for an 8" duct would give you 1" of fiberglass, which will make a significant difference and be quite inexpensive.