Damaged Foundation Perimeter Insulation
The foam insulation board on the exterior foundation wall is damaged in areas, with the protective surface broken down and the foam exposed.

Less commonPlan for itCosmeticFoundation and crawl space
Why it matters
Damaged sections of the insulation board are exposed in areas and should be patched to maintain the protective finish and prevent moisture from reaching the foam over time.
How common is it?
Found in 2% of the homes HomeCloud evaluated, Sep 2025 to Oct 2026.
Counted by the finding's name on HomeCloud reports, so the true number can be a little higher.
How soon to fix it
HomeCloud reports list this as something to plan for rather than an emergency.
More foundation and structure resources
Foundation cracks: which ones to worry aboutHow to tell normal shrinkage cracks from settlement, track a crack over time and know when to call a structural engineer.Crawl space basics: moisture, vents and vapor barriersWhat a healthy crawl space looks like, vented vs. sealed crawl spaces, and where vapor barriers, dehumidifiers and encapsulation fit in.Termites when you're buying a homeWhat bait stations and drilled holes mean, how North Carolina's termite report works, what to ask the seller and what treatment involves.
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