Typical 1st Generation EIFS Exterior Insulation and Finish System (EIFS): Often called “synthetic stucco,” it became popular in the 1980s and 1990s as an attractive, energy-efficient siding. At first glance, it looks just like traditional stucco. But many homeowners have since learned that EIFS can create major problems if not installed or maintained correctly. What is EIFS? EIFS is made up of three layers:
The Big Problem: Moisture Intrusion water gets behind EIFS through window flashing, roof connections, or wall penetrations; it has nowhere to go. Unlike real stucco, EIFS does not “breathe.” This often leads to:
Why It’s Hard to Spot? Many homes with EIFS look perfectly fine on the outside. But beneath the surface, problems can be severe. In fact, the only way to know for sure is through specialized inspections using moisture scans and probes or infrared scans. Common Installation Mistakes Most EIFS failures come from poor installation, such as:
Termite and Pest Issues In termite-prone areas, EIFS can conceal termite activity because the foam board makes tunneling easy, and damage is hidden from view. The Stigma Around EIFS Homes Because of past lawsuits and widespread failures, many insurers refuse to issue new coverage on EIFS homes, and buyers are often wary due to the history of this material. This can reduce resale value and the length of time on the market compared to homes with brick, siding, or traditional stucco. Can EIFS Be Fixed? Yes — newer or second-generation EIFS systems include a drainage plane behind the foam to let water escape and tend to have less issues. For older homes or first-generation homes:
Final Thoughts EIFS isn’t automatically bad — when installed correctly with proper drainage, it can perform well. But barrier EIFS homes (especially from the 1980s and 1990s) come with a high risk of hidden water damage. If you own or are considering buying one, schedule an impartial professional inspection to find out what’s behind the walls. Trace Inspections can provide this service.
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AuthorScott Patterson has been a professional home inspector since 1995. Scott works out of the Greater Nashville TN area. Contact his team at Trace Inspections for all of your inspection needs. Archives
December 2025
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