Is the gray insulance material asbestos?
Asbestos insulation was only manufactured as: loose fill, spray on or block types. I do not know of any roll-type purely asbestos insulation. The EPA began banning some asbestos products in 1973 and continued a series of bans all the way through 1989. The EPA has allowed a panel-type asbestos to be used in some Government facilities and allows some products to contain small amounts of asbestos. Depending on the age of your home, the likelihood of that being asbestos would be slim. FHA homes require an appraisal before selling them. FHA appraisers probably would have seen the exposed asbestos because their appraisals are more strict. If asbestos was found, the home seller would have been required to remove it.

There is now an asbestos test kit available for homeowners...