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Yes, basement insulation needs a vapor barrier due to its susceptibility to moisture seeping in from the outside of the house. You should install a moisture barrier before you install insulation or purchase insulation that comes prebuilt with a moisture barrier to avoid water damage in your insulation and costly mold and water remediation expenses. 

Some basement waterproofing methods can actually cause your water or moisture problems to get worse, which is why it’s so important to call in a professional who knows how to solve your underlying issue and use the appropriate waterproofing methods. An example of this would be applying latex waterproofing paint to the insides of your basement walls without fixing the water issue outside. Doing so can trap moisture in the basement walls, which can promote mold growth, peeling paint, and even damaged concrete. However, when done by a professional, the only downside to basement waterproofing is the up-front cost.

Damp proofing and waterproofing are both methods to help keep your basement dry. Damp proofing keeps soil moisture from entering your basement, which is helpful since your basement is underground. Waterproofing, however, keeps both soil moisture and liquid water out of the basement, which is essential, especially if you live in a wet environment. Because it’s more protective, waterproofing typically costs more than damp proofing.

The purpose of crawl space encapsulation is to prevent mold by blocking moisture and reducing humidity. If the vapor barrier is properly installed, it significantly reduces the chance of mold developing within the crawl space. However, mold can sometimes grow behind the encapsulation material, but it will be sealed away from the main area. Additionally, moisture can still condense inside the encapsulated space, so if you notice excess humidity, installing a dehumidifier is recommended to prevent mold and mildew growth.