Some people think installing a plastic barrier in the wall is the answer, but this approach only traps moisture. A better way is to use rigid insulation (also known as blue board). This insulation is semi- permeable and allows moisture to travel through the wall, allowing it to dry. Water can also enter the basement if the grade of the land is pitched toward the house. Grading the soil away from the house and adding rain gutters will guide rainwater away from the house. Openings from the house to the attic and poor ceiling insulation in houses located in colder climates can lead to ice dams that cause water to back up into the house. Air leakage from the house to the attic will carry moisture in the form of humidity into the attic that can form water on the underside of the roof leading to rotting and mold. (Courtesy: Rhinehart Inspections)