Typically, an EIFS includes insulation board that is secured to the exterior wall surface with a specially formulated adhesive, a water-resistant base coat that is applied on top of the insulation, and a finish coat. Early versions of EIFS created a barrier that resulted in moisture getting trapped behind them and resulted in mold and wood rot, leading many insurers to attach a comprehensive EIFS exclusion to contractors' liability policies. Modern EIFS allow moisture to drain, and EIFS are widely used without issue as long as they are properly installed and maintained. Many insurers will remove the exclusion with respect to drainable EIFS but may want to see evidence that the contractor is following proper installation practices.