If you have composite siding, installed in 1996 or prior, that has the signature “LP” knot pictured here, you likely have LP InnerSeal composite siding, a product that was subject to class-action lawsuit for premature failure and elevated maintenance requirements.  Well and annually maintained (e.g., painted and caulked according to LP’s requirements), this product will deliver years of serviceable life, but it does require elevated maintenance for sure.  I’ve inspected many homes with this product in excellent condition.  I’ve inspected many in poor condition.  Deterioration typically happens first at the bottom lap edge of lap siding boards and panels.  Water wicks into the exposed bottom lap edge causing the composite siding to swell, edge-check (crack), obviously deteriorate, and sometimes it presents fungal growth.  Also pictured here is clearly deteriorated LP InnerSeal composite siding.  With deterioration, there’s always the possibility of underlying damage not visible without invasive inspection.  Therefore, for this recent home inspection in Oak Harbor on Whidbey Island, I recommend further evaluation by a qualified contractor, one familiar with LP InnerSeal siding products.  Other areas that commonly deteriorate are at siding/siding and siding/trim abutments and where caulking has failed (e.g., around exterior penetrations like windows and doors).