What is perimeter insulation?

Perimeter insulation is insulation applied to the outside of a building on the parts that sit below ground level: basement walls, foundation strips and the edge of a ground-bearing slab. The insulation is therefore permanently in contact with soil and moisture.

That imposes requirements which do not apply to ordinary wall insulation. The material must be load-bearing under compression (it carries earth pressure and sometimes the paving above), absorb almost no water and not decay in the ground.

Material choice

Mineral wool and wood fibre are not suitable below ground: they retain water and then lose their insulating effect.

Materials for perimeter insulation below ground
XPS (extruded polystyrene) The standard choice: closed-cell structure absorbs virtually no water, high compressive strength.
Cellular glass (foamed glass) Stronger still, completely waterproof and vapour tight, but more expensive.
Water-repellent EPS Specially water-repellent grades are also used.
Ordinary facade-grade EPS Not suitable below ground.
Mineral wool and wood fibre Not suitable below ground: they retain water and then lose their insulating effect.
Suitability of insulation materials for use below ground level, in contact with soil and moisture, as described in this article.

Why do it

  1. Remove the thermal bridge at the slab edge. Even with a well-insulated floor, heat escapes outwards through the foundation beam. That costs energy and produces cold floor edges and sometimes mould in the corner.
  2. Make the basement usable as living or working space, without reducing the internal dimensions and without the interstitial condensation risk of internal insulation.
  3. Protect the tanking. The insulation board shields the bitumen or polymer waterproofing from damage during backfilling.

Execution

The correct sequence is: clean the wall, apply the waterproofing, bond the insulation boards onto it with bitumen adhesive (do not fix mechanically — every plug is a hole in the waterproofing), then place a dimpled membrane or drainage mat against it, and only then backfill with free-draining material. Carry the insulation above ground level up behind the facade finish, and detail the plinth transition neatly and weather-resistantly; that transition is the most vulnerable point.

In new build, perimeter insulation is a modest extra cost because the excavation is open anyway. Retrofitting means digging out all round, which raises costs sharply — usually only worthwhile if you are already excavating for drainage or basement tanking.

Related terms

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