Aside from some insulation considerations the decision is primarily a matter of individual taste. Some sidings are more appropriate for a modern or character home. The durability and cost of certain materials may also be a factor in your decision.

Adding insulation behind new siding is a relatively inexpensive and effective way to add R value to a cold wall. Generally rigid insulation will add R5 or R6 per inch on insulation depth. Some insulation sheeting types and makes can be taped at the seams to create a vapor barrier as well. Since the insulation continuously covers the entire exterior wall it is more effective than insulation inside most exterior walls since the insulation is fitted between the wood or steel framing studs. Exterior cold transfers through the wall to the interior finish via the wood or steel stud which is the thermal weak spot on the wall.