A properly insulated basement can help reduce your energy costs. However, basement walls are one of the most controversial areas of a house to insulate and seal. You need to carefully consider the advantages and disadvantages, not to mention moisture control.
Advantages and disadvantages
In most cases, a basement with insulation installed in the exterior basement walls should be considered a conditioned space. Even in a house with an unconditioned basement, the basement is more connected to other living spaces than to the outside. This connection makes basement wall insulation preferable to insulating the basement ceiling.
Compared to insulating the basement ceiling, insulating basement walls has the following advantages:
Requires less insulation (1,350 square feet of wall insulation for a 36 × 48-ft. basement with 8-ft. walls, compared with 1,725 sq. ft. ceiling)
More easily achieves continuous thermal and air leakage boundaries because basement ceilings typically include electrical wiring, plumbing, and ductwork.
Requires little, if any, increase in the size of the heating and cooling equipment. The heat loss and air leakage through the basement ceiling is similar to that through the exterior walls of the basement.
These are some other advantages of insulation on exterior basement walls:
Minimizes thermal bridging and reducing heat loss through the foundation
Protects the damp-proof coating from damage during backfilling
Serves as a capillary break to moisture intrusion
Protects the foundation from the effects of the freeze-thaw cycle in extreme climates
Reduces the potential for condensation on surfaces in the basement
Conserves room area, relative to installing insulation on the interior
The disadvantages of basement wall insulation include the following:
Costs may exceed those for insulating the basement ceiling, depending on materials and approach selected
Installation is expensive for an existing building unless a perimeter drainage system is also being installed
Many exterior insulation materials are susceptible to insect infestation
Some contractors are unfamiliar with proper detailing procedures that are critical to performance
If surrounding soil contains radon gas, the house will require a mitigation system underneath the basement floor.
Adding insulation to the interior of the foundation is often more cost effective for an existing building. Interior insulation has the following advantages and disadvantages.
Advantages:
Interior insulation is much less expensive to install than exterior insulation for existing buildings
Almost any insulation type can be used, giving a wider selection of materials
The threat of insect infestation is eliminated
The space is isolated from the colder earth more effectively than when using exterior methods
Disadvantages:
Many insulation types require a fire-rated covering since they release toxic gases when ignited
Interior insulation reduces usable interior space by a few inches
It doesn't protect the damp-proof coating like the exterior insulation
If the perimeter drainage is poor, the insulation may become saturated by moisture weeping through the foundation walls
Superior air-sealing details and vapor diffusion retarders are important for adequate performance
Types of basement insulation
Once you have determined the insulation R-value you'll need for either adding insulation to an existing basement or new home construction, you can choose the type of insulation, including the following:
The installation of insulation in your basement will depend on the type you choose and the best way to control moisture in your particular climate.
Other considerations
When insulating any part of your home, you also need to consider proper air sealing and moisture control. Moisture control in basements is particularly important since they are notorious for problems with water intrusion, humidity, and mold.
Finally, you need to consider radon resistance or control when installing any type of foundation.