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The insulation the contractor is referring to, is the insulation on the heat pump refrigerant lines. * This is not the fiberglass or rockwool insulation that homes have to keep out the outside cold/hot. That would not normally exist between interior spaces, anyway. It's a tubular pipe insulation that goes around the pipes. It works best if it is a vapor ...


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It is mostly likely the blue inlet valve has developed a leak - I see it leaking. This seems like a common LG problem. Found the part from reddit https://smile.amazon.com/dp/B081S421DT/ref=cm_sw_r_cp_api_glt_fabc_3TSMW6513VTE3Z67FP80 and plenty of YouTube videos to replace. Just ordered the replacement. I agree with you on the insulation.


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Hydraulic cement is normally used on concrete walls and floors to seal them. You would need to clean out any insulation products used in the wall and on the coolant line. Having good drainage in this area so water won’t hold at or above the level of the hole may be what is needed and in any case should be done to eliminate leaks. Dig a foot or more below ...


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