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I’m finishing a portion of my basement where the exterior wall is sitting on a ~3 ft foundation wall. I am framing a half wall to cover the cement foundation wall, that will transition as a shelf. I’ve insulated the concrete wall with rigid foam as seen below.My question is whether I should insulate the top of the foundation wall that sticks out from the sill plate. See below. My thought was to cut rigid foam to fit, (as seen below) then seal the crack in the corner with spray foam, and tape over that. Note that the house is 102 years old, and is definitely not tightly sealed, but I did a water test on the walls, and it is dry. Also, I live in Seattle, where it is very wet, but not particularly cold in winter or hot in summer. Thanks for any help you can provide.
Yes that will work very well for you. If you want you can also add bat insulation in the wall cavity for more R value as that thin foam does not give you much at all.