Insulating makes humidity control more critical. Cooler walls are more prone to condensation from moisture in the basement air. This is similar to carpeting or wood on the concrete floor. Its not a problem if you maintain <50%RH in the basement. Get a good %RH meter to monitor the %RH in the basement. Green grass climates usually require significant dehumidification suring the wet times of the year. This avoids the musty basement odor. It takes a pint of dehumidification per 25 sq.ft. of basement space to maintain <50%RH.
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