"Understanding Your Home" by Building Inspector Mark Visser
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Your health is at risk
A damp or wet basement means that one of the largest spaces in your home become useless. Not only do you loose valuable storage room but is can also effect your health. Moist air encourages mold to grow on organic surfaces such as wood panelling, carpets and drywall. Musty smells and mold spores will become airborne and spread throughout the house where it can enter your lungs. This can create many health problems.
Adding insulation to an existing basement wall from the exterior side is a big job. There is always a possibility of a soil cave-in which could lead to serious injury or even death. This is NOT a DIY job. A water proofing or excavation contractor should do the job. They have the knowhow and equipment to do the job right
Basement Insulation.
Waterproofing Contractor

Basement Insulation - From Exterior Side

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Basement Insulation. Waterproofing Contractor

The thermal resistance (or RSI) value is a measure of a material's ability to resists heat flow. The higher the R value, the better the material insulates.
The RSI value of the insulation is set by local codes and varies from area to area. Before starting any repairs, remodeling or retrofitting involving insulation check with your local building department. Aany moist, damp or wet insulation, has to be replaced as water damaged insulation is no longer effective.

Wet or damp basement
. If there is a severe water problem in the basement the exterior may have to be escavated by a water proofing or excavation contractor. Foundation repairs
1. Damp-proofing
2. Rigid board insulation
3. Replace the old weeping or drainage pipes
4. Protective coating to prevent exposure to sunlight

The insulation can be capped, as illustrated below, with J-channel, metal flashing or wood flashing to prevent water damage.

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