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Yes, crawl space insulation is worth it if installed correctly. Installing insulation in your crawl space will improve the air quality, help stabilize your home's temperature, lower your energy bills, and prevent pests from entering your home. Though you’ll pay more to install insulation initially, the savings you get from installing insulation can help offset those initial costs over time.

Structural insulated panels and rigid foam boards have the highest R-value of any insulation that contractors commonly use, with R-values reaching up to around 8.0. These types of insulation are best in extremely cold climates, but they’re generally preferred for new construction, as they can be challenging to retrofit. Blown-in and loose fill insulation provide the next best insulative value, provided the installation is done properly. It’s important to choose an insulation type that meets your needs based on climate, as maximizing R-value may not always be financially worthwhile if you live in a moderate climate.

Rigid foam board insulation is one of the safest insulation materials for basement walls. The panels offer a moisture barrier to prevent mold and mildew build-up. At the same time, this material is also fire-resistant, so you don’t have to worry as much about a fire breaking out as you would with spray foam insulation. 

You do not always need to remove old insulation before adding new. If the existing insulation is in good condition—not wet, physically damaged, moldy, or infested with pests—you can add new insulation directly on top of it for a compounding effect. You can also mix different types, such as adding blown-in insulation around existing fiberglass batts.

However, removal is recommended if the old insulation is compromised by water damage or pests. You should also remove it if you plan to install a different type of insulation, like switching from roll or batt insulation to spray foam. If the existing insulation is very old or damaged, you will likely get more benefit from removing it and starting fresh.