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How do I repair water damage to Masonite hardboard siding?

Masonite revisited

If you have water damage to the bottom edge of Masonite hardboard siding, it can be covered. Board and batt siding consists of 4' wide sheets with a 1-1/2" batt nailed vertically every 16". If the siding has bubbled at the bottom, it is because of water damage.
To repair:
With a circular saw, cut the batts up from the bottom 5 1/2" (the width of a 1X6). Nail a cedar 1X6 to the bottom, butted up to the batts. Caulk the top edge and paint.

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