Fiberglass insulation is not a good choice for basements, crawl spaces, or any room with ambient moisture and humidity issues. Here's why: the insulation absorbs the moisture and then becomes a problem in many ways. The added weight of the moisture makes it sag, for one, and paper-backed insulation is one of mold's favorite snacks. So instead of insulation you essentially have a waterlogged mold buffet. Mmm.