Tape the bottom of the insulation with electrical tape. You’ll leave a 3-inch space between the top of the heater and the bottom of the insulation, which cuts down on the effectiveness of the insulation, but is better than starting a fire in the house.
Erect a trim piece under the insulation and attach it to your wooden wall joists with nails or screws. Settle the insulation into the trim securely and then install your drywall to lie just above the top of the baseboard heater.
Install the baseboard heaters after you’ve placed your wallboard over the insulation, if they are freestanding electric heaters. Extend the wall and baseboards all the way to the floor so that the insulation behind the wall doesn’t come in contact with the heater at all.
Insulate walls from the outside without disturbing the walls or coming anywhere near the baseboard heaters. This method is used primarily to insulate existing structures. Shoot foam insulation in cavities found on the exterior of the wall or remove a loose brick and fill the space between the brick and the wall with foam insulation or small polystyrene balls.