Damages ceilings may need new drywall or plaster to correct the damaged areas. If the paint is peeling from the plaster or drywall, it will be necessary to remove all of the damaged materials and use drywall compound or plaster to repair these areas. If you are not sure what measures are needed for this project you way want to consult with a licensed contractor to determine if any any structural damage has occurred. Yes, I plan to repair the damaged are - approx 3' x 4'. However, want's puzzeling is that the areas that are peeling are 15' to 20' from damaged area????? Could the new attic insulation be too heavy and causing micro cracks in dry wall? Yes, I plan to repair the damaged are - approx 3' x 4'. However, want's puzzeling is that the areas that are peeling are 15' to 20' from damaged area????? Could the new attic insulation be too heavy and causing micro cracks in dry wall?