Louisiana-Pacific Inner-Seal (LP), siding has a history of failure from moisture intrusion since it’s introduction in 1985. The siding failures are caused by product failure and incorrect installation. The most common mode of failure is swelling of the siding from moisture intrusion. A class action lawsuit against Louisiana-Pacific was settled in 1996, which entitles home owners to damage settlements.
All money from these settlements have been exhausted so home buyers are on their own for repairs or replacement. If this type of siding exists on your house, local siding bids should be obtained to replace all of the exterior siding. A siding failure link is below which provides information about LP and other failed siding products.