An exterior insulated finish wall assembly includes an exterior panel member and an insert member. The exterior panel member includes a rigid insulative substrate having a body portion and a tail portion extending from the body portion, wherein a recess is defined by a sloped surface and a back surface of the tail portion. The insert member is disposed within the recess and is sized and shaped to correspond to the recess. A drainage channel is defined between the sloped and back surfaces of the tail portion and the insert member.