Window shutters are a solid and stable window covering usually consisting of a frame of vertical stiles and horizontal rails (top, centre and bottom). Set within this frame can be louvers (both operable or fixed, horizontal or vertical), solid panels, fabric, glass and almost any other item that can be mounted within a frame. Shutters may be employed for a variety of reasons, including controlling the amount of sunlight that enters a room, to provide privacy, security, to protect against weather or unwanted intrusion or damage and to enhance the aesthetics of a building.
Interior shutters
Interior shutters are typically divided into narrow units hinged accordion-style so that two or more units cover each side of a window opening when closed. Operable louvered shutters have louvers (or louvres in British usage), or slats, controlled by a tilt bar or rod to adjust the louver position and keep them in a uniform position, to control light, visibility and airflow. Shutters with operable louvers are described variously as traditional shutters, California shutters, or plantation shutters. Plantation shutters, typical of warmer climates like Florida, South Africa, the Mediterranean or Australia, typically have only two shutters per window and wide louver blades.

Exterior shutters
Exterior shutters were originally constructed for light control, privacy, security and protection from the elements. Functional shutters hinge on each side of a window or at the top and swing closed when necessary and can also be mounted on tracks applied to the face of the building. Fixed and operable louvers shed rain, allow air transfer, filter direct sunlight, protect from small flying debris, and provide privacy. Operable louvered shutters allow for greater control of light and ventilation. Solid panels and board-and-batten shutters are generally used for security or protection during severe weather. Non-functional shutters are merely used to enhance the appearance of a building. Functional shutters have traditionally been constructed from solid woods that have proven to endure outside elements but have also been mass-produced in woods less suitable to the outdoors like pine. Finishing wood shutters is recommended for extended life. Composite shutters offer advantages over wood shutters such as resistance to twisting, splitting, and rotting. However, PVC shutters are often hinged with three or more hinges and painted with vinyl-safe paint to keep from bowing in the sun and can require additional hardware. Fiberglass shutters are more dimensionally stable than PVC.
Certain hardwoods currently used for exterior shutters, specifically Spanish cedar, Honduran mahogany and teak, are resistant to rot and decay, and far more durable than a softer wood like untreated pine. Because of the tannin in these woods they are also not prone to problems from insects. Pressure treatment with wood preservative makes pine, cedar and other types of wood suitable for exterior shutters. Non-functional exterior shutters can be constructed from wood, vinyl, fiberglass or other synthetic materials. Non-functional shutters can be simply screwed or bolted directly to the building, with spacers or other hardware to prevent water accumulating against the wall. Fiberglass, a material widely used for boat hulls, is not prone to rotting or twisting, is dimensionally stable and has low expansion and contraction. It is a reinforced plastic, unlike vinyl or PVC, so fiberglass shutters do not have a tendency to warp or sag. Its strength is comparable to aluminum; however, it does not suffer from corrosion and electrolysis.
SOURCE: WIKIPEDIA
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