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While insulation is required for all exterior walls in a house, it is not typically required for interior walls. Local and state building codes mandate that new construction homes have adequate insulation in exterior walls and ceilings to suit the local climate.

However, there are several benefits to adding insulation to interior walls. It is excellent for sound-dampening between rooms and can help with temperature control by maintaining a regulated temperature in specific rooms and lowering heat transfer between adjacent areas. Insulating interior walls can also contribute to the overall energy efficiency of your home.

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. 

One of the clearest signs that your insulation isn’t working as well as it should be is a noticeable difference in temperature throughout your home. One room might feel icy while another is hot as Arizona—this indicates that some parts of your home are either retaining or losing heat more than others. Additionally, a sudden increase in your energy bills, evidence of pests or rodents, or evident water damage are other signals that warrant a thorough inspection of your insulation and potential replacement.

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.