When insulating rim joists, where should one leave a termite inspection strip? I've read that the top three inches of the wall should be left clear of insulation. Is it ok to bury the sill plate in spray foam? If the house can be inspected from the outside (for mud tubes for instance), is it ok to completely cover the rim joist area?

Termites can come up the interior side of the foundation wall too. You'll still need an inspection strip at the top of the foundation. It's fine to insulate then inspection strip with removable cut batts or something, but you need to be able to pull them for inspection when needed, so it can't be buried behind wallboard, etc.

Thanks, Dana. I wasn't aware that they can tunnel from inside and below the rim joist as well. Is it safe to encapsulate the sill plate in foam, as shown in the picture linked below? The vertical face of the wall isn't insulated, but would a 3" gap on the vertical wall be enough to monitor insect activity? I hope termites aren't that smart, and that even if the sill is covered they would pop out of the foam while exploring and provide evidence of activity. http://www.finehomebuilding.com/CMS/uploadedimages/Fine_Homebuilding/Articles/238/021238091-01-spray-foam_xlg.jpg

For posterity, I thought I'd link to another post that I found helpful. And thanks again, Dana.

http://www.greenbuildingtalk.com/Forums/tabid/53/aff/14/afv/topic/aft/77769/Default.aspx

The interior search of termites can be more time consuming. For the interior side, the easiest way to inspect is by looking for the imperfections in the wood and drywall of your foundation. Identify these imperfections with a shine flashlight along the length of the wall or areas that may be raised. Apply a little pressure with your finger to any areas that look affected will help to identify the severity of the damage.

home remedies for termites