Vol. 10, No. 3, Pg. 32. Problems with Synthetic Stucco.

• Author: By Ralph C. McCullough II and Michael M. Shetterly

South Carolina Lawyer

1998.

Vol. 10, No. 3, Pg. 32.

Problems with Synthetic Stucco

30Problems with Synthetic StuccoBy Ralph C. McCullough II and Michael M. ShetterlyAs an unfortunate homeowner can testify, water damage is one of the most devastating injuries a house can suffer. Like a cancer, water invades the house, breaking down defense barriers as it seeps its way into the infrastructure and, ultimately, into the interior.

32 In its wake, the water leaves behind rotted wood, spongy sheet-rock and other damage. In this weakened state, the house is vulnerable to a variety of external attacks, most notably termites. Termite infestation signals the inevitable demise of the house as a shelter and as a valuable asset.

Technology has ventured far in combating this problem through the development and use of treated wood, sealants and other such devices designed to eliminate, or at least to substantially mitigate, the presence of water in the home. Today, however, it seems that technology has taken a step backwards, and it is synthetic stucco that is in the forefront of this regression.

Designed originally in Europe to repair bomb-damaged buildings in World War II, synthetic stucco has recently become the newest trend in modern home building. This is especially true in the Southeast, where stucco homes have rapidly proliferated. Synthetic stucco's popularity and success is due in large part to the fact that it represents an alternative to the traditional wood or brick home. Moreover, stucco is unique in that it allows architects and home-builders to produce more creative and versatile designs. Synthetic stucco, itself, however, is more than a singular substance like brick or wood. Rather, synthetic stucco is the sum of many parts, a system. This system is known as Exterior Insulation and Finishing System (EIFS).

EIFS consists of three major components. First, there is an insulation board, made of foam, that is secured to the exterior of the house through a specially designed adhesive. Second, a water-resistant base coat is applied on top of the insulation, which is then reinforced by a fiberglass mesh for extra strength and support. Finally, an acrylic coat (stucco) is employed that is essentially crack-resistant and gives the stucco its colorful and aesthetic touch. The result is a stone-like finish that looks quite formidable and strong.

In reality, however, water can still enter a stucco home either through possible cracks in the exterior or exposed joints around windows, doors or other openings. Once the water enters, EIFS homes retain it more so than other building systems. The slow evaporation process allows significant moisture build-up within the house.

In short, EIFS is designed to keep water out, but if water should get in, it becomes essentially trapped and cannot drain or otherwise be transferred from inside the wall. The end result is a rotted and weakened infrastructure that ultimately serves as a launching pad for termites, molds and mildew. It is these features that create the problem.

And what a problem it is. Lawsuits have sprung forth throughout the Southeast including South Carolina, North Carolina, Georgia and Florida. Because of liability concerns, one of the nature's largest construction liability insurers, Maryland Casualty Company of Baltimore, no longer offers coverage for EIFS-installed homes. Likewise, some banks are refusing to approve loans for EIFS houses. The problem was so...