We have a home inspector (selling house) stating they want us to put up drywall on an exterior wall in the garage. I know it's code for ceilings and the abutting walls to the interior, but do exterior walls need it?

It's a concrete wall with insulation strip on it.

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    Add a picture? It's not obvious to me what you mean by "with insulation strip on it" and that might impact the correct answer. – Ecnerwal May 15 '19 at 15:14
  • "We have a home inspector (selling house)" Home inspector is selling house? Have you asked the inspector to provide the documentation that states you are required to cover a cement wall with drywall? Or, can you remove the "insulation strip"? – Alaska Man May 15 '19 at 17:20

Drywall on the inside of an exterior wall has not been required in any of the states I have lived, it is required for fire protection on stick built, but a concrete block wall has the appropriate fire ratings and should require nothing. call your fire marshal to verify local code as far as I know drywall is not required on an interior wall even from a garage to living space with block walls and your fire marshal or fire department can verify this. I think your inspector is nuts.

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    I don't know what "with insulation strip on it" is supposed to mean without a picture, but if there is exposed insulation rather than bare block wall, there may indeed be a reason to have drywall over it, as many types of insulation are flammable or partially flammable (paper face) when exposed. – Ecnerwal May 15 '19 at 15:11

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