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exterior insulation and finish systems (EIFS)

Multilayered exterior wall systems designed to provide high energy efficiency in both residential and commercial buildings. Typically, an EIFS system 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. EIFS gained attention from the insurance industry when claims began to arise alleging damages caused by moisture. This resulted in liability claims against contractors and the manufacturers of EIFS. Additionally, a considerable number of first-party claims have been brought under homeowners policies. Insurers have attempted to limit their exposure with exclusions or by refusing to insure risks with a substantial exposure (e.g., EIFS homes or contractors that install EIFS).

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