A 1⁄8-in. crack doesn’t seem like much to worry about, but a 1⁄8-in. crack that runs the length of your house amounts to a square hole 8 in. on a side—a big-enough hole to toss a cat through. Because it is a crack, you can seal it with caulk, but not all holes in the building envelope are cracks that can be sealed with a tube of caulk. Some of them really are big enough to toss a cat through, and they need to be sealed with sheet goods such as drywall, rigid foam, or plywood.
Some common gaps and holes are listed in the Energy Star thermal-bypass checklist. Among the most common holes found in poorly sealed houses are holes near soffits, chases, and bathtubs.