Various types of insulation can be used, including rigid mineral fibre, extruded polystyrene, and high density expanded polystyrene.

It is important that the selected insulation product is moisture tolerant as it can potentially be exposed to significant dampness and possible wetting in this below-grade application. The use of exterior rigid mineral fibre at the exterior of the concrete foundation wall also helps the wall assembly with drainage.

The exterior insulation in this assembly will maintain the concrete structure at closer to indoor temperatures, consequently typically reducing the risk of condensation and associated damage.

If more than 50% of the insulation is located outside of the concrete structure, the interior stud wall can be filled with insulation to increase the effective R-value of the assembly.