EIFS - Is it back?

I was rereading an old article by Ann Rudd Hickman (an author at IRMI) about EIFS and the incredible meltdown in General Liability coverage in 2003-2006. Stucco contractors performing EIFS saw rates increase 400-600% in a one year period almost driving the entire industry out of business. Now, 5-6 years later EIFS coverage is available, and while not cheap, it is affordable.

WHAT IS EIFS

Exterior Insulation and Finish Systems (EIFS) are multi-layered exterior wall systems that are used on both commercial buildings and homes. They provide superior energy efficiency and offer much greater design flexibility than other cladding products. In simple terms it's a synthetic stucco that can be easily applied and has both the advantage of longevity and insulation. For more information on EIFS and the pros and cons visit http://www.eima.com/

EIFS received a bad rap due a rash of claims a few years ago which caused insurance companies to panic and pull out of the EIFS market. Price rose and many of the smaller contractors were squeezed out of the business leaving a core group of experience installers. While insurance premiums continue to be higher than a "stucco only" contractor the price for EIFS insurance is no longer exorbitant and quite often can be included inside the General Liability policy limits.

EIFS contractors contacting my agency should plan of providing proof of certification along with references for current and past EIFS jobs. With proper documentation an insurance packet can be put together to validate the carrier extending EIFS coverage for a small additional price.

Feel free to call the agency at 719-531-7000 or visit our web sites www.drywall-insurance.com or stucco-insurance.com or EIFS-insurance.com

Martin