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You do not need to drywall over most types of garage insulation. However, doing so can increase noise reduction, make the space more attractive, and keep children and pets from touching harmful fiberglass insulation. If you’re using cellulose or some other type of blown-in insulation (fiberglass and mineral wool are common), you will need drywall to contain the insulation material.

Any level over 17% moisture should be replaced, as this could be a sign that the drywall is too compromised to be considered safe. A contractor or water restoration provider can come out and use a moisture meter to check the moisture level in your drywall. 

If after a visual inspection you’re still unsure about if your drywall is salvageable, a professional reading is the next best option.

Beadboard is a decorative element and lacks the structural integrity of drywall. It cannot hold much weight and is not meant to be used as an insulator or moisture barrier, like drywall is. In almost all cases, beadboard is placed over an existing wall surface which, in modern days, is usually drywall, but decades ago could have been wood paneling.

Most drywall used for interior walls of homes is 1/2-inch thick. This size strikes a balance of being easy to handle and hang while being thick enough for the durability needed on interior wall applications.