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Insulating Existing Basements by Alex Wilson Foundation Insulation, Part 3 It is neither easy nor cheap to properly insulate existing foundations, but retrofit foundation insulation often makes sense for a number of reasons. First, the vast majority of foundation s have no insulation. While Americans have spent millions of dollars insulating their houses over the past dozen years, they've put little or nothing into the basement. As a result, today a disproportionate amount of heat is lost through many house foundations . Second, many foundations leak—and improving the drainage away from foundation walls is a key element of any thorough foundation-insulation retrofit job. In fact, proper foundation drainage usually is just as important as insulation—if not more important. Whether you embark on