Does insulation trap moisture? Yes, it does. That soft cotton-candy like stuff traps moisture and won't let it go. Complicating the matter is that shiny reflective coating on the backside of the insulation. Air flow won't penetrate that reflective coating. But, the drywall feels dry! Yes, it may be. But the insulation is still wet! The only way to prevent the potential for mold growth is to call in the experts at Rainbow Restoration. We've got you covered in all aspects of water damage and mold remediation.