Hello, the attached policy carries an EIFS Endorsement. Does this exclude the entire building's coverage if the building has over 5% EIFS or does it simply apply to the Eifs portion of the building?

Texas Subscriber

Yes, the endorsement excludes coverage if over 5% of the building is covered with EIFS. There is nothing in the endorsement that states that the exclusion only applies to the portion of the building covered in EIFS; the exclusion applies to the entire building. Note that there is an exception to the exclusion for particular causes of loss as follows:

1.  Earthquake/Earth Movement
2.  Smoke causing sudden and accidental loss or damage
3.  Impact of Aircraft or Vehicles
4.  Riot or Civil Commotion
5.  Vandalism
6.  Sprinkler Leakage
7.  Sinkhole Collapse

Therefore, if 20% of the property is covered by EIFS, and the policy provides coverage for one of those perils and the property is damaged by one of those perils, including portions covered with EIFS, then there is coverage for the damaged portions of the building. For example – 20% of the property is covered by EIFS and a dump truck drives into the side of the building. If vehicle damage is a covered cause of loss, then the entire damage is covered. The EIFS exclusion does not apply because the damage was from a peril listed in the exception to the exclusion.