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Underfloor insulation alone will not cause moisture and mold, but improper installation can. Although the purpose is to seal any drafts, your subfloor still needs ventilation. If you seal the area too tightly and prevent all airflow, this can cause moisture to get trapped. This moisture eventually leads to mold and—if your floors are wood—rotting.

You don’t always need to install a dehumidifier in your encapsulated crawl space, but it might be a good idea in certain instances. If you notice obvious signs of condensation, mold, or musty smells permeating from your crawl space, a dehumidifier can help. It’s ideal for homes in humid areas.

In a worst case scenario, structural damage like rust on metal beams, rotting wood, and swelling on doors and windows can signal moisture problems that would benefit from a dehumidifier.

A plastic vapor barrier should completely cover your basement to prevent water from penetrating through the walls. This typically goes before installing insulation to prevent moisture from building up and becoming trapped on the inside of your insulation, where it can collect and lead to mold damage. Installing insulation after the vapor barrier allows for any moisture to exit the walls for better ventilation.

The most flood-resistant materials you can count on in a flood scenario are concrete, closed-cell insulation, foam insulation (also known as expandable foam), pressure-treated wood, marine-grade plywood, and ceramic tile. When a material is flood-resistant, it can withstand direct contact with floodwater for at least 72 hours without being significantly damaged.