Walls Below Grade Exterior Insulation When foundation walls enclosing conditioned space are insulated on the exterior, the insulation must extend at least to the bottom of the floor of the conditioned space. If the top of a footing is less than 0.6 m (2 ft.) below the exterior ground level, wall insulation must extend down to the top of the footing and the same level of insulation must be placed on the top or bottom surface of the floor and extend at least 1 m (3 ft. 3 in.) from the perimeter. A floor-on-ground with imbedded heating ducts, cables or pipes must have insulation placed under its entire bottom surface. All floors-on-ground enclosing conditioned spaces must be insulated around their perimeters to reduce heat loss from the slab to the foundation wall, or wall insulation must be placed on the outside of the foundation wall and extend down to the level of the bottom of the floor. When insulation is applied on the outer surface of a wall or a slab perimeter, it must be a type not susceptible to water damage such as expanded or extruded polystyrene. It may also be a type designed to drain water, such as high-density, rigid glass fibre or mineral fibre insulation. The portion of the insulation above grade must be protected by 12 mm (1⁄2 in.) cement parging on wire lath applied to the exposed face and edge, cement board or preservative-treated plywood (Figure 15). 15 Concrete wall with rigid insulation on outer face base flashing batt insulation vapour barrier tightly fitted to framing sill plate barrier 12 mm (1⁄2 in.) cement parging on wire lath nailed to sill plate and concrete type 4 extruded polystyrene, or type 2 expanded polystyrene, or rigid glass fibre insulation bonded to concrete granular backfill around insulation to protect against damage due to frost heave concrete wall