Side sill insulation damage

[ViperBite]

Since I had nothing better to do this evening I decided to take off my drivers side-side sill. Came off real easy although the quality of the screws holding this on is pretty scary. Ok, at the second screw location from the front wheel on the top, there is a nickel sized hole all the way through the insulation. Should I just leave it, fill it with aluminum foil, or ? I can't figure how this hole got there because there is nothing that would cause this on the car itself. It is directly under the mounting hole for the sill.

Otherwise the insulation looked great although I do have some discoloration midway down the sill. Nothing to bad but it looks like I need to close the gap between the insulation and top edge of the sill. Exhaust system looks to be stock. Any ideas on what to do about the hole?

 

[hemibeep]

If the hole is "rubbed" open, just spread out the insulation with needlenose pliers. If the hole is at the top, at least the exhaust is further away (top to bottom) then if the hole was on the side. Even though the heat rises, it is not "direct" heat from exhaust. Just watch for discoloration around the hole....if color is okay, then don't worry.