I was checking out some of my plumbing in the cellar, and the previous owner has some of the cold water supply line all tightly wrapped up with tape and some sort of insulation. Now when I squeeze that pipe, water comes out, now is that from condensation, from it being a very cold pipe and my cellar being heated, or do i have a leak??? I really don't want to start ripping out the tape/insulation combo if i don't have to, there is quite a bit of it.
First off, be careful when ripping the tape. If it's an older house (not sure how old), the tape insulation may contain asbestos, which is a known carcinogen. You don't want to fool with it.
I would not suspect that much condensation if the pipe is wrapped.
Your water would have to be very cold to get so much that it would drip out when you squeeze the wrapped pipe.
Then again, if you have a leak, water should be dripping out on it's own, without your squeezing the pipe.