Exterior Insulation and Finish Systems or EIFS (pronounced “eefis”) is a type of exterior cladding most often used on metal buildings for aesthetic appeal. Simply defined, it’s a foam board (similar to Styrofoam), which is covered by an embedded fiberglass mess for strength, and finished with a textured acrylic topcoat that mimics stucco. In fact, if you stand five feet away, you can rarely tell the difference between a building clad in stucco versus one clad with EIFS.
Unfortunately, this resemblance and acceptability stops there.
While the product has been widely used, properties with EIFS have reports of loss due to water damage caused by moisture penetrating its layers and being unable to escape. Costs can increase when you also consider the mold remediation and potential site pollution cleanup that can follow initial damages.
For those reasons, EIFS has become a serious obstacle in obtaining insurance and should be avoided. If you have a planned new metal building, be sure your contract does not include the use of EIFS as an exterior finish. Numerous standard and sometimes even non-standard insurance carriers will provide a very quick “No” on new business submissions if one or more buildings have EIFS and existing polices could be subject to non-renewal or exclusions for EIFS related claims.
Why EIFS presents a problem for insurance
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Moisture trapping: EIFS systems can trap moisture, leading to damage like rot and mold that can be very costly to repair.
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Complex claims: The nature of EIFS damage can lead to complex and expensive claims that involve multiple parties, including manufacturers, installers, and designers.
How do I tell the difference between Stucco and EIFS?
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The simplest and almost fool-proof way is the “Knock test”. When knocking on the exterior of a building, EIFS will have a distinct hollow sound and almost regardless of how hard you knock, it won’t hurt the knuckles on your hand. Traditional stucco will sound like concrete and feel hard and will be uncomfortable depending on how hard you knock on it.
What to do if you have EIFS
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Inspect Regularly – For most buildings, EIFS should be inspected every two to three years. Ideally, consider having a professional EIFS inspection to assess the condition and identify any hidden moisture problems.
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Perform Regular Maintenance – You should repair any cracks, chips, or other damage and properly apply a sealant roughly every 4-5 years.
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Work with specialized insurance professionals – Understand if your current policy has any EIFS related exclusions and if so, what those are. If you are considering obtaining other quotes, understand what carriers will or will not be an option because of the EIFS. Partially clad EIFS buildings are better than those fully clad. Finding insurance for EIFS can be challenging. It is important to work with agents and underwriters who understand the specific risks associated with EIFS and who can help you navigate the available options.
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In extreme conditions, consider removing it – We have seen church and/or school buildings with EIFS exteriors that lost their insurance for one or more reasons and consequently had difficulty obtaining replacement coverage because of the EIFS exterior, resulting in much higher insurance premiums. Or you could simply be restricted from being able to market your insurance to other carriers because of the EIFS. Removing EIFS and replacing it with something different is a major project but it might be worth looking into and potentially less expensive in the long run.
EIFS was introduced in the United States in the late 1960’s and became more popular in the 1970’s. Oddly, it’s only somewhat recently that it’s gained such an unpopular position with the insurance industry. Like most products, there have been some improvements in the manufacture of it but currently the insurance industry is not widely adopting these.
