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The best insulation to use is spray foam, although it is an expensive option. Another option that is less expensive is 1" rigid foam board. Both of these options eliminate the need for tar paper or a vapour barrier as they are self-sealing applications. Avoid using batt insulation w/vapor barrier in basement applications as condensation may occur which will encourage mould growth.

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Q: What kind of insulation is best for basement walls?
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