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Insulation on basement walls


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Is their any exception to basement walls not being insulated when the area is not finished (a storage room), no ceiling insulation and the area is conditioned? The rim joist are insulated; however, not to the proper standard. I believe N1102.1.5, from the 2003 IRC, applies.

N1102.1.5 When the basement is a conditioned space, the basement walls shall be insulated in accordance with table N 1102.1. When the basement is not a conditioned space, either the basement walls or the ceiling separating the basement from conditioned space shall be insulated in accordance with table N 1102.1. When insulating basement walls, the required R value shall be applied from the top of the basement wall to a depth of 10 feet below grade or to the top of the basement floor, whichever is less.


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