Can You Get Stuck With Stucco? Coverage Under An EIFS Exclusion For Property Damage Caused By Construction Defects
Source: https://www.mondaq.com/, October 22, 2020
By: Kathy Maus and J. Blake Hunter, Butler Weihmuller Latz Craig LLP
Many commercial general liability policies contain an exterior insulation and finish systems (EIFS) exclusion, which bars coverage under specific circumstances when EIFS is used in construction. EIFS is also known as synthetic stucco and generally refers to a multi-layered exterior building finish. EIFS usually has six layers: 1) an optional water-resistive barrier; 2) adhesive that attaches the insulation board to the supporting structure; 3) a foam insulation board that is secured to the exterior wall substrate; 4) a base coat that is applied to the top of the insulation; 5) a fiberglass mesh that reinforces the base coat; and 6) a finish. 1 These layers are bonded together, but moisture can become trapped between them and lead to wood rot. 2 The trapped moisture can cause damages to the buildings, leading to many property damage lawsuits. Read more.
