EIFS is short for Exterior Insulation and Finish System. EIFS is different than traditional hard coat stucco. EIFS utilizes a thick insulation board installed on top of your plywood wall sheathing before the surface finish is applied. Most problems are a result of moisture getting behind or trapped in the EIFS. The foam insulation board acts like a sponge and traps water against your plywood sheathing. Eventually, with enough moisture you can experience thousands of dollars in dry-rot and structural damage.