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Yes, cold walls are a common indicator of poor or inadequate insulation, especially if the walls feel significantly colder than the air in the room. This suggests that heat from your furnace is escaping rather than being retained. The issue could be that the walls have no insulation, or that the existing insulation is old or has been damaged by water, moisture, or pests. Your best course of action is to hire a professional to investigate. An insulation contractor can determine if you need to add or replace insulation and can often perform the work without creating large holes in your drywall. If you suspect the problem might also be related to your heating system's performance, an HVAC technician can take a closer look.

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. 

When installing board and batten siding, make sure there is wall sheathing and a moisture-resistant barrier installed. Behind that sheathing should be plywood or OSB for you to nail the boards and battens into. If there isn’t plywood or OSB, you can install vertical furring strips at 1½- to 2-foot intervals to nail the boards and battens to.

Insulating windows without plastic is usually the better method. Outside of simply replacing your windows, you could buy cellular shades, which trap air between the window and the home, add a window film that blocks UV rays and traps heat, or cover your windows with a low-emissivity coating called “low-E.”