Douglas Council's spent over 1.1 million pounds on insulation for social housing, according to a Freedom of Information request.
This involved putting polystyrene beads into wall cavities.
The council says it acknowledges it might have worsened damp and corrosion in some houses, but denies it's the main cause.
It adds these issues were down to the general condition, age and construction of some properties at the time the insulation was installed.
Power station chimney flue arrives this week
Peel sewage works hits milestone
MHK to query gas buying for power generation
Yoga studio applies for sign permission
Yacht club worries over lifeboat retirement
One nuisance cyclist ticketed in more than three years
Huge floating book fair to arrive in Douglas next month