When problems arise from a botched install, a house with manufactured stone veneer shows the same moisture related issues as a house with a botched stucco system. It leaks behind the cladding and the water gets trapped. Then the house rots.. If you re thinking about stone veneer on your home, be sure to consider these six problems before you buy. Moisture Issues. While it s called stone veneer or stone siding, the latest product on the market today isn t really stone at all. Leaks. Vent Problems. Roofing Issues. Mold. Leaking Windows and Doors.. stone veneer problems. What is Stone Veneer? Stone veneer is a decorative, protective building material manufactured to replicate the look of . Despite what some builders and masons think, manufactured stone veneer details that ultimately will lead to massive moisture problems..