A Barrier to EIFS? The Insurance
Crisis Facing Exterior Insulation Finish
Systems
By Elizabeth J.
Anderson
What are EIFS?
Exterior Insulation Finish Systems,
commonly known as EIFS or synthetic
stucco, are multi-layered exterior wall
systems used on both commercial buildings
and residential homes. These systems are
usually comprised of five layers: an
exterior finish, a reinforcing mesh to
protect the system, an insulator, an
adhesive substance binding the insulator
to the building and a substrate to which
the insulator is attached. EIFS were
originally developed in Europe, making
their first appearance in the United
States more than thirty years ago, and
becoming very popular in the early
1980s.
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.
The Problem:
Litigation over Wet Walls 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.
The Solution: A
Better EIFS EIFS are facing an uphill
battle, but it is a battle that can be
won. With all of its benefits, unmatched
by any competitive product, residential
homes and commercial buildings alike need
EIFS. However, contractors and
subcontractors wishing to use EIFS need
insurance to cover construction defects,
and insurance companies need to minimize
their exposure. How can all of these
seemingly irreconcilable needs be met? By
employing several risk management
techniques: * Require a mandatory
training class and certification for all
EIFS installers. The course should be
conducted by an accredited
organization.
The Association
of the Wall and Ceiling Industries (AWCI)
offers a program, EIFS - Doing it Right,
and optional national certification. For
more information on the program, see
http://www.awci.org/eifs.htm. To further
bolster confidence in such a program, a
third party organization with no
affiliation with the wall industry could
develop a similar program.
* EIFS
installers should employ a certified loss
control individual to oversee the EIFS
installation process. The individual
should have an extensive construction
background and should be very detail
oriented with regard to installation
recommendations, industry and trade
standards, and city, county and state
codes. This individual can make sure that
the EIFS is installed in the proper
sequence and coordinate with the other
trade contractors to ensure the system's
integrity.
* EIFS
installers need to hire and retain an
experienced workforce. The recent surge
in new residential construction has
forced builders to engage in fast-track
construction, leading to lower minimal
accepted standards in the industry. If
EIFS installers maintain an experienced
workforce, this decline in construction
quality experienced on an industry-wide
basis can be curtailed.
* EIFS
manufacturers should get involved with
the quality control process. A
representative from the manufacturer
should conduct regular site inspections
and approve the work to ensure that the
proper material is specified for
application during the design process.
EIFS manufacturers have an incentive to
participate in EIFS construction - the
continued viability of their product.
* Owners of
residential and commercial buildings
employing EIFS need to maintain the
system properly. Caulk around window and
door openings must be maintained to avoid
water infiltration. EIFS professionals
should be consulted before engaging in
any projects that might jeopardize the
integrity of the EIFS system. EIFS
installers must take the initiative to
educate those that will be maintaining
the EIFS system by providing written
materials and consultation services
relating to EIFS care.
* Industry
standards need to be developed and
implemented for EIFS. These standards
need to be stringently monitored: EIFS
installers need to be checked for their
installer's certification card, site
inspections should be conducted both with
scheduled site inspections and
unannounced visits, and additional
safeguards should be employed to ensure
compliance with the industry
standards.
* An EIFS system
is available that makes use of a special
water management system. These systems
collect water that penetrates the EIFS
and then diverts it back to the exterior
of the building before it can cause rot
damage. The system incorporates a special
barrier paper, old-fashioned metal
flashings, cement board in place of foam
board and a combination of a cement
basecoat topped with a textured polymer
stucco material. The Bottom Line: EIFS
can Survive the Insurance Crisis One
thing is clear:
EIFS are facing
a crisis; studies have shown that EIFS
clad buildings have problems with
moisture penetrating the system, and
insurance carriers have taken notice.
However, water penetration is a problem
common to all exterior wall systems -
EIFS simply have the added problem of
being unable to expel unwanted moisture.
If the integrity of EIFS, a truly
waterproof system, can be maintained, it
will not only avoid the problem of water
intrusion; it will solve it. If general
contractors,
EIFS installers,
EIFS manufacturers and EIFS building
owners work together, the fear of
continued EIFS litigation facing
construction insurance companies will be
allayed, and EIFS can continue to provide
a cost-effective, aesthetically pleasing,
flexible, efficient way to protect.
Courtesy of
AWCI