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Depending on where you live and the conditions of your basement, you may not need to insulate your basement. Your best bet is to talk to a basement remodeling company to find out what they recommend doing.

Insulating your basement can help improve your home's energy efficiency, but it will also increase the cost of your basement remodel project. The average cost of installing basement insulation is $2,400.

The most affordable way to insulate behind unfinished walls is to install fiberglass batts or rolls. These total around $0.75 per linear foot, with the width matching the gaps between standard studs perfectly. However, it’s important to consider the R-value of your insulation and the climate in your area, as fiberglass insulation isn’t the best in terms of preventing heat transfer. Plus, the most affordable option may cost more on electricity bills over time. The most affordable way to insulate behind finished walls is to leave them up and use blown-in insulation to avoid drywall replacement.

Blown-in insulation works, but only for unfinished attics. Also, it isn’t the longest-lasting nor the most effective option. For better options, look into spray foam insulation or natural fiber batts. They typically have a longer lifespan, better heat resistance, and stronger sound-proof abilities. Spray foam insulation costs about $1.25 to $1.50 per square foot, but can go up to more than $4 per square foot. Fiber batt pricing varies depending on the material.

Natural fiber batts and spray foam insulation both work great for soundproofing. Newer materials, such as hemp batts, are more expensive but more effective for insulation and sound blocking. They are also more sustainable. There is also a professional system called Blow-In Blanket Insulation (BIBS) that is soundproof and moisture-resistant. However, BIBS must be installed professionally and can be a costly investment.