I recently bought a house that has 2 zones of hydro air. One of the air handlers sits in the basement and the other in the attic. The attic has soffit vents and a ridge vent for ventilation. I noticed what looks like a little water damage in the corner of ceiling in the 2 story foyer. I did not notice this on the walk throughs and the home inspector didn't notice it when he came through the house. So I went up in the attic and poked around. I found the area that I believe has the water damage, but could see nothing and nothing was wet. So my theory is that it happened over the winter possibly caused by an ice dam. I have been doing some research and think the ice dam is caused by the air handler giving off heat in the attic in the winter. So I read on this board about using rigid insulation to enclose the air handler. I am thinking about doing this, but here is my long winded question: The duct work is run on top of the insulation that shields the living area from the attic. So I know that this will give off heat too. So is it really worth building a cover for the air handler if the duct work is going to give off heat anyway? The ductwork does has a grey cover with some insulation in it, but the insulation looks pretty thin. Thanks in advance for all replies.