Insulation inspection occurs AFTER insulation installed but BEFORE drywall. Inspector verifies: insulation type matches plan (batt, blown, spray foam), R-value per IECC/energy code for each assembly (ceiling, wall, floor, rim joist), full cavity fill with no gaps/voids/compression, vapor retarder correctly placed (warm side in heating-dominated climates), air sealing at: top/bottom plates, rim joist, penetrations (pipes, wires, ducts), window/door framing, recessed lights (IC-rated or capped). Blower door test may be required at this stage or at final. Common failures: gaps at electrical boxes, compressed insulation at narrow cavities, missing insulation at band joist, wrong R-value, vapor retarder on wrong side. HOLD POINT — no drywall until passed.