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Polyurethane waterproofing is a popular, effective solution for protecting the interior of a home from water damage. It is applied in liquid form as a coating that prevents water from seeping through walls, floors and ceilings and can even be used to create an impermeable barrier against damp conditions in basements and crawl spaces. This type of waterproofing is relatively inexpensive compared to other solutions, but it requires professional installation to be effective.