We have a finished basement that was done by previous owners. We know there is no insulation.
We have discovered mold that likely started when the previous owners had several floods before putting in a sump. The basement has been dry in the two years we've owned it.
As part of the remediation, the drywall will be removed 4' up from the bottom (the mold is only on the bottom couple of inches).
We're going to leave the walls open for a while to see if there are any unknown leaks. Once we are comfortable that we've solved any moisture problems, we plan to reinstall paperless drywall. But we also want to add insulation. It has to be non-organic and non-porous to inhibit any future mold growth.
For this type of situation, what kind of insulation would be best, keeping in mind that cost is a factor. Could we put insulation boards (XPS, I think) in each stud cavity? Would that provide the right kind of vapor barrier?
Thanks for any and all advice.