(Q) Does the vapor barrier in a finished basement need to be a complete air-tight seal? Also, should the poly be located against the bare concrete wall, or should it be located immediately under the drywall between the drywall and the insulation?
(A) The better the seal of vapor barrier the better. It should be applied on top of the insulation, whether it is rigid foam or rock wool type. The idea is to keep warm humid air from reaching the cold wall.
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