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Remove upper wall insulation in basement?

I'm thinking about finishing the basement and leaving the exterior block walls untreated and exposed. I like the look of exposed block walls and if down the road (the basement is dry now) there are moisture issues, I wouldn't have to deal with removing damp dry wall at the exterior walls. I will still frame and drywall some interior walls and install carpet tiles, but just wondering if it's a terrible idea to take down the insulation that is currently on the exterior basement walls. It's the kind that only hangs on the upper half of the wall. My house is 20 years old and the basement is dry. Thanks for thinking about this!

Re: Remove upper wall insulation in basement?

1) where do you live?
2) what are the local codes on minimum insulation. ?

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