The Problem With Stucco and EIFS Homes
Synthetic stucco, also known as Exterior Insulating and Finish System (EIFS), is a popular choice for home exteriors due to its aesthetic appeal, design flexibility, and energy efficiency. However, EIFS homes have faced significant issues, particularly related to water accumulation and mold growth.
EIFS construction involves attaching an insulation board to the exterior wall (e.g., plywood), applying a durable, water-resistant base coat reinforced with fiberglass mesh, and finishing with a stucco-like coat.
Originally developed in post-WWII Germany for repairing large buildings, EIFS was introduced to U.S. commercial buildings in the 1970s and homes in the 1980s. Today, it is used in about 2% of residential structures.
In 1995, several lawsuits in North Carolina highlighted moisture intrusion problems in EIFS homes. Homeowners reported issues such as:
- Increased indoor humidity
- Infestations of termites, ants, and other insects
- Mold, mildew, or fungi growth on interior walls or window frames
- Cracking of drywall
- Cracking, peeling, and bubbling of paint
- Cracking on EIFS dressing bands around windows
- Delamination (EIFS detaching from the house sheathing)
- Rotting wood trim
- Loss of structural integrity
Evidence suggests that once water penetrates the EIFS insulation board, it becomes trapped, leading to water retention issues. Unlike other exterior finishes like wood and brick, EIFS does not allow water to escape, creating a “non-breathable” barrier that traps moisture.
To address these problems, the EIFS industry has developed a more drainable system in recent years. This “drainable” or “water-managed” system includes a secondary moisture barrier and a drainage mat with weep holes to allow trapped water to escape.
Why is a MoistureFree Warranty Needed?
Synthetic and hardcoat stucco homes face various issues, including negative stigma and reluctance from agents to buy or sell them. A MoistureFree Warranty can mitigate these concerns by preserving the home’s value, protecting all parties in a transaction, and providing buyers with peace of mind.
What Does the MoistureFree Warranty Cover?
The warranty covers repairs related to stucco if elevated moisture levels are detected during the warranty term. It pays for modifications or repairs to ensure the affected area is dry again.
How Can I Purchase a Warranty?
- Inspection: A qualified moisture inspector must inspect the home following the MoistureFree Warranty Inspection Protocol.
- Submission: Submit the inspection report and a completed warranty application form to Moisture Warranty Corporation (MWC).
- Certified Repair Analysis (CRA): MWC professionals will prepare a CRA detailing necessary repairs to make the home eligible for the warranty.
- Verification: After completing the repairs, a second inspection verifies the repairs, and the warranty is issued.
Is the Warranty Transferable and Renewable?
Yes, the warranty is fully transferable to subsequent homeowners and can be renewed following a qualifying protocol inspection.
How Does the MoistureFree Warranty Differ from Other Programs?
The MoistureFree Warranty stands out as the only national third-party warranty without the potential conflicts of interest that come with guarantees from repair contractors. Unlike other programs, which are often backed by a single insurance policy on the contractor and not designed for multiple homes, the MoistureFree Warranty is more robust. Large claims can bankrupt other companies, leaving homeowners to cover costs themselves. Additionally, other guarantees often require you to use their inspectors and repair contractors, which can be a conflict of interest.
At MWC, you have the freedom to choose your inspector, provided they follow our inspection protocol. You also select the repair contractor, and as long as repairs meet our Repair Standards and Options, we will issue the warranty. In some states, MWC is the only warranty approved by the state’s insurance commission.
How Does a MoistureFree Warranty Affect the Sale of a Stucco Home?
Having a MoistureFree Warranty can significantly reduce the time your home is on the market, by up to 50%. It can also help retain 13% to 26% of the sales price. For a $450,000 home, this translates to $58,500 to $117,000 in home value protection at the time of sale.
