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Louisiana Pacific manufactured a pressed wood siding that was used extensively in residential construction from the 1980s through the mid-1990s. The lowest grade of Louisiana Pacific siding has a tendency to delaminate and absorb moisture if not caulked, sealed and painted regularly. If you have rotting around your chimney, the foundation, or around windows and doors, you may have LP siding or a similiar composite board siding.  

The best way to positively identify it is to pull away some of the insulation in the attic to reveal the underside of the exterior siding if able to without causing damage. It will be stamped by the manufacturer. There is a hallmark knot hole pattern in most LP siding, but it may not be present on every board.   

Also, have a qualified building contractor inspect the windows, doors, and trim and take necessary corrective action taken prior to receiving an offer on your home. This may mean installing flashing over windows and doors, and where a wooden deck meets the siding, replacing rotten boards (especially around the perimeter near the ground) with fiber cement siding, caulking meticulously, and painting. Be sure that the bottom edge of each lap is properly painted as recommended by the manufacturer, as that is where much of the moisture is absorbed if not sealed properly.

Although Louisiana Pacific Siding is the best known problem siding, its important to know that there are many other brands of siding that may delaminate. If properly installed and cared for, this composite type of siding can last for many years. For more information about the various brands and types of defective siding and how to recognize them, go to the search engine of your choice and search for defective siding. Many different links should come up.