The use of insulation materials is crucial for minimizing thermal losses in various industries like automotive, building, solar, and aerospace. Plexiglass and Expanded Polystyrene (EPS) foam are popular choices due to their effective temperature regulation, lightweight nature, and cost-effectiveness. Accurate measurement of their thermal properties is vital for achieving conservation goals. While the parallel hot wire technique provides valuable insights, accurately determining heat source strength (HW) poses a challenge, impacting measurement accuracy. To address this, the modified Conjugate Gradient Method (CGM) is employed for simultaneous estimation of thermal conductivity (λ), specific heat (c) and HW of Plexiglass and EPS foam. The direct problem result has been validated with published experimental work that shows deviations less than 2 %. The study investigates the impact of sensor positioning relative to the hot-wire (rm) and introduces artificial Gaussian error with standard deviations (θ) of 0.01 °C, 0.02 °C and 0.1 °C. At θ = 0.1 °C the percentage relative errors in the estimation of λ, c and HW with rm = 5 mm for Plexiglass are 5 %, 1.442 %, and 4.651 % respectively. For EPS foam the corresponding errors are 2.44 %, 1.26 %, and 1.74 %. The modified CGM emerges as a reliable algorithm for the measurement of thermal properties of insulation materials.