March 4, 2003

To Homeowners with EIFS Exteriors

Dear Homeowner:

EIFS are characterized as waterproof systems, because water cannot penetrate them if the integrity of the system is maintained. Unfortunately, there are many ways EIFS can be penetrated: improperly installed flashing around doors, windows, or roof elements, perforations or cracks in the coating itself, or homeowner penetration, such as when a deck is added and the EIFS is cracked. Unlike cavity wall systems, EIFS does not have a secondary drainage barrier to permit water that penetrates the face of the system to drain and escape. Therefore, once water penetrates an EIFS, it is trapped inside the system and the water often rots the wood framing or other interior elements. The irony: one of EIFS' strongest attributes - its waterproof nature – has become its primary weakness.

Water damage in EIFS homes and buildings has led to a surge in litigation. In many parts of the country, especially those that with high heat and humidity, individuals experiencing problems with moisture entering their EIFS clad homes have brought more than a thousand suits, asserting contract, warranty and negligence claims. The lawsuits are typically brought against the general contractor, EIFS manufacturer, EIFS applicator, and in some instances, other subcontractors, such as roofers and window installers.

Commercial EIFS building lawsuits are not as common, primarily because the factors contributing to EIFS failures inherent in residential homes are not present in commercial buildings. First, commercial buildings often employ steel, rather than wood, framing and may use substrates that are not moisture sensitive. Additionally, commercial-grade windows tend to perform better than residential-grade windows, commercial subcontractors tend to be more experienced than their residential counterparts and commercial construction projects are better supervised. Finally, the flat roofs that don most commercial buildings avoid the problem of angled roofs that intersect with walls in most residences, an easy entrance for unwanted moisture.

The surge in EIFS lawsuits has not gone unnoticed by insurance providers in the construction industry. Contractors and EIFS installers desiring to use EIFS are finding it increasingly difficult to obtain insurance policies that cover EIFS failures. Some insurance companies have strict EIFS exclusions, while others limit the percentage of EIFS work that a contractor can do under the insurance policy. In addition, increased premiums have become standard for policies that do cover EIFS failures. The result: many are predicting the demise of EIFS.

If you have Exterior Insulation and Finish System on the exterior of your home, do not panic. We have heard of homeowners in other areas that have panicked and had all of the EIFS ripped off their homes only to find that the damage from moisture was very minor. Many of these people have spent upwards of $50,000 that was completely unnecessary. When there is moisture intrusion the source needs to be found, repaired and then the home is fine.

We have inspected and repaired over one thousand homes and we find that ninety-eight or ninty-nine percent of the problems are caused by five factors.

1. The lack of proper kick-out flashings.

2. Wood windows that leak into the cavity of the wall.

3. Insect infestation due to improper backwrapping and below grade applications.

4. Improper caulk joints.

5. And just bad installations. Period.

Occasionally there is a problem at a deck attachment or with a chimney flashing but these are rare. If windows have not begun to rot, it is relatively inexpensive to stop them from leaking as outlined in our Wood Window Letter. Kick-out flashings can be installed on an existing home for usually around one hundred and fifty to two hundred dollars. The main problem here is that they usually look like a patch which is many times unavoidable. The average cost to inspect and repair an existing home with EIFS is between three thousand and four thousand dollars. We believe that makes more sense than to remove it and replace it with another type cladding.

Please call or e-mail me if you have any questions or concerns.

Sincerely,

Robert Santana

Why Use EIFS?

• EIFS are very energy efficient, literally wrapping the exterior of the building or home in a thermal blanket. By insulating outside the structure, EIFS reduce air infiltration, stabilize the interior environment and reduce energy consumption. By contrast, traditional "between the studs" installation leaves gaps where heat and cold pass more freely between the outdoors and space within. EIFS can reduce air filtration by as much as 55% over standard brick or wood construction.
• EIFS adds to the "R-value" of a home or building. R-value is a measurement of the resistance to heat flow; the higher the R-value, the better the material's insulating value. Most EIFS use insulation board with an R-value of R-4 to R-5.6 per inch as the innermost layer in the wall system. When combined with standard wall cavity insulation, this extra layer can boost wall insulation from R-11 to R-16 or more.
• EIFS allows increased design flexibility and aesthetic appeal at an affordable price. EIFS bear a resemblance to stucco or stone, but are far more versatile than these and other materials. EIFS come in virtually limitless colors and a wide variety of textures, but can also be fashioned into virtually any shape or design. With EIFS, applicators can create intricate architectural detailing that would often be cost-prohibitive with conventional construction.