Moisture problems in a basement may be caused by condensation, the result of warm air from outside or upstairs entering the cooler basement. More serious moisture problems can result from water seeping through the soil surrounding the house and entering the basement through cracks in the foundation. Spray insulation can reduce condensation problems substantially by reducing the flow of air and heat from outside the basement. But it cannot prevent leaks. Foundation leaks should be repaired before you apply spray insulation.
Spraying on liquid cellulose insulation is more complicated than putting batts between studs or applying sheets of rigid foam. Unless you are very familiar with this product and own special equipment, you need to hire a professional for this job. A professional has protective gear and quality equipment, as well as the expertise needed for the work. This type of insulation is an adhesive fluid that is shot from a hose at high velocity and adheres to the surface it hits. It can be applied to basement walls in a thickness of several inches.
If you apply spray insulation to a wall that has a leak, the water may begin to accumulate behind the insulation. This could cause a number of problems, including deterioration of the foundation wall and separation of the insulation from the wall. If the spray isn't applied correctly, it can get into electric outlets or heating vents. Gaps in the insulation are another potential problem. Air quality can suffer if adequate ventilation isn't provided in a basement that has been insulated with spray.
Spray insulation is a valid solution for damp basement problems in some situations, but not all. If you are building a structure, or your renovations involve excavating outside, it may be less expensive and more effective to insulate outside the basement wall with rigid foam panels. If your problems with dampness are caused primarily by localized leaks, fixing the leaks may make a bigger difference than applying spray insulation. Because this type of insulation requires hiring a professional, it can be an expensive option.