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Paneling
Paneling is made of wood, which is organic! Which means it will support mould growth...something you don't want.
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Block Walls
Block foundation walls are porous and the blocks have 2 or 3 hollows inside of them. They are susceptible to large amounts of vapour transferring through them, as seen here.
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Corner Seepage
Many homeowners experience seepage in the corners of their foundation.