Insulation peeling off the foundation

Hi Inspectors,

I have curious case where insulation around the house above the foundation is peeling off. There should be cement layer above the insulation, but it looks like the cement job is poor and due to weather the insulation is coming off.
Will this cause harm to foundation over time, is this is a big issue?

Please advise. Thanks.

I don't see any insulation. It looks to me like the skim coat or concrete finish at the slab edge is deteriorated due to aggregate pockets, meaning the concrete when placed was not properly consolidated. This probably won't affect the structure, but might get worse and will look ugly. I'd get a concrete expert in there to evaluate and repair, usually they will trowel on a patch type concrete with a bonding agent.

Hi Mike,

Thanks for the quick response. Really appreciate it. Attached a close up picture. It is soft and is similar to thermocore. Like you say it will disintegrate further as there is no concrete layer on top.

Thanks,
Suchit

That's more visible. Could be insulating board, but I think I can see form board impressions on it. Hard to say without seeing and touching. Anyway, my original recommendation stands. Thanks for the update.

any porous surface expose to moisture and rain will deteriorate for sure. raise it as a material defect in your report since this is an structural issue.