How to insulate the wood-framed section of a stepped basement?
We will be putting foam on the outer and possibly inner surfaces of our basement but I am wondering how to insulate the above-ground stepped (wood-framed) section of the basement.
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If it's a wood-framed wall, I assume it is an above-grade wall. It should be insulated like any other above-grade wall.
Just follow the usual continuity rules: where the concrete walls meet the wood-framed wall, maintain air barrier continuity and thermal barrier continuity.
For example, don't leave any exposed concrete on the insulated side of the concrete -- cover it all up with insulation, and make sure the insulation on one wall connects with the insulation on the adjacent wall.