What is EPS — and Why Telling Insurers About It Really Matters

When applying for or renewing a property or business insurance policy, your insurer might ask you:

"What percentage of the building contains EPS?"

If you’ve never heard of EPS — or don’t know why this matters — this article is for you. Let’s break it down.

What is EPS?

EPS stands for Expanded Polystyrene — a lightweight, rigid foam material often used in building construction.

You’ve probably seen EPS as:

• Cool-room panelling in food and hospitality industries

• Insulation inside walls and ceilings

• Lightweight wall sheeting or cladding

• Internal sandwich panels for factories and warehouses

• External coatings on buildings (sometimes with a render finish)

It’s popular because it’s:

→ Lightweight

→ Insulating (great for cold rooms or temperature control)

→ Easy to install

→ Cost-effective

But there’s one major concern with EPS: fire risk.

Why Insurers Want to Know About EPS

EPS is considered a combustible material, particularly in older or unmodified buildings. If exposed to fire or high heat, it can:

• Ignite quickly

• Spread flames rapidly

• Release toxic gases

• Be hard to detect behind panels or walls

Because of this, buildings with a high percentage of EPS are considered higher risk by insurers, especially if:

• It’s not fully fire-retarded

• It’s near ignition sources (machinery, kitchens, switchboards)

• Fire protection systems like sprinklers or fire-rated separation aren't in place

This means:

→ Claims could be more severe

→ Fire can quickly spread to the entire site

→ Clean-up and repair is more intensive

So, insurers need to know not only if EPS is present — but how much of the building contains it.

What Information Do Insurers Need?

When arranging cover, insurers may ask questions like:

• Is EPS present?

• What percentage of the wall, ceiling, or roof construction is EPS?

• Is it fire-retardant grade EPS?

• Where is it located (e.g. external cladding, interior panelling)?

• Is it near heat sources, kitchens or switchboards?

• Are there fire suppression systems (e.g. sprinklers)?

• Are annual fire safety checks or risk inspections completed?

Providing this information helps underwriters assess the true risk of the building, and offer:

• Appropriate premiums

• Wording that matches the risk

• Proper protection for your asset

What Happens If You Don’t Disclose EPS?

Non-disclosure or underestimating the amount of EPS in your building could lead to:

• Reduced insurance coverage

• A declined claim if a fire occurs

• Delays in acceptance or underwriting

• Potential cancellation of a policy

• Unexpected costs if exclusions are applied

Example: A business claims for a major fire. The insurer investigates and finds 50% of internal walls contain non-fire-retardant EPS — but only 10% was declared. The claim is reduced, disputed, or declined due to material non-disclosure.

In Summary

EPS is not a deal-breaker, but it must be disclosed accurately. The more your insurer knows about your building and how you manage fire risk, the better they can price and protect your cover.

→ If you’re unsure about the materials in your building, get a builder, engineer or fire safety expert to assess it.

→ Your insurance broker can also help you prepare a clear submission — including engineering reports or fire risk surveys if needed.

Need help reviewing your property insurance or confirming material disclosures?

We’re here to make sure your policy reflects your risk — and protects you properly in the event of a claim.