Case Study: How One Couple Recovered £12K in Removal Costs

Names changed to protect privacy. All facts verified by legal documentation.

The Problem Emerges

Background

Sarah and Michael (not their real names), a retired couple in their 60s, live in a 1930s semi-detached house in Yorkshire. In March 2023, they received a cold call offering "free external wall insulation" under the ECO4 scheme.

"We were struggling with heating bills," Sarah explains. "The caller said we qualified for a government grant. They made it sound like we'd be foolish not to take advantage."

The Installation

• Company: Trustmark-registered installer (name withheld for legal reasons)
• Work completed: April 2023
• Duration: 4 days (should have been 2-3 weeks)
• Material: External wall insulation with thin coat render

"The work was done incredibly quickly," Michael recalls. "We thought that was a good thing. They were in and out in less than a week."

First Signs of Trouble

Problems appeared within 2 months:

• June 2023: Fine cracks appearing around windows
• July 2023: Dark staining below roof line after heavy rain
• August 2023: Damp patch on internal bedroom wall
• September 2023: Visible bulging in render on north-facing wall

"We contacted the installer straight away," says Sarah. "They came out once in July, said it was 'settlement' and normal. After that, they stopped returning our calls."

Taking Action

Documentation Phase (September-October 2023)

What Sarah and Michael Did Right

1. Comprehensive photography:
   • Dated photos of every defect
   • Weekly progress photos showing deterioration
   • Photos immediately after rain showing water ingress
2. Kept all correspondence:
   • Original sales materials and contract
   • Installation certificates
   • Every email, text, and recorded delivery receipt
   • Log of phone calls with dates and summaries
3. Independent survey:
   • Commissioned RICS surveyor (£850)
   • Thermal imaging survey (£300)
   • Detailed report completed October 2023

The Survey Findings

The independent surveyor identified catastrophic failures:

• Insulation boards adhered with insufficient adhesive (dabs only, not full coverage)
• No mechanical fixings installed
• Render applied in single thick coat (should be multiple thin coats)
• No drip edges at roof line or above windows
• Joints between boards not staggered
• Work carried out during wet weather (render applied to damp substrate)

Survey conclusion: "Work falls significantly below acceptable standards. Full removal and replacement required."

Estimated cost: £18,500 for removal and remediation

The Legal Battle

First Attempt: Trustmark Complaint (November 2023)

• Formal complaint filed with supporting survey
• Trustmark acknowledged receipt
• Installer given 28 days to respond
• Installer disputed survey findings
• Trustmark investigation: 4 months

"Trustmark eventually concluded the work was 'substandard' but said we needed to give the installer opportunity to remediate," Sarah explains. "By this point, the company had dissolved."

Trustmark Insurance Claim (March 2024)

• Applied for insurance protection (up to £25,000)
• Initial rejection: "Claim outside time limits"
• Appealed with timeline showing complaint made while company trading
• Second rejection: "Dispute over cause of defects"

"We were getting desperate," says Michael. "The render was literally falling off in places. Water was getting into the walls."

Solicitor Intervention (April 2024)

Sarah and Michael consulted a solicitor specializing in construction disputes.

Legal Strategy

1. Target defendants identified:
   • Dissolved installer company (via dissolved company route)
   • Director personally (fraudulent trading allegations)
   • Energy company that funded the work
   • Trustmark insurer
2. Letter Before Action sent to all parties (May 2024)
3. Claim amount: £18,500 remediation + £3,000 costs + £1,500 damages = £23,000 total

The Settlement (June 2024)

Within 3 weeks of the solicitor's letter:

Energy Company Settlement Offer

• Energy company admitted responsibility under ECO4 regulations
• Offered £12,000 settlement without admission of liability
• Conditional on signing NDA (non-disclosure agreement)

The Negotiation

Solicitor advised:

• £12,000 represented 65% of removal costs
• Further litigation would take 12-18 months
• No guarantee of higher award
• Legal costs would consume £5,000-£8,000

"Our solicitor was honest," Sarah says. "£12,000 now or possibly £18,000 in a year, minus legal fees, minus the stress. We took the settlement."

Final Settlement Terms

• £12,000 paid within 14 days
• Legal costs covered (£1,800)
• NDA with limited carve-outs (could discuss case without naming energy company)
• No admission of liability
• Case closed July 2024

The Removal and Remediation

Finding a Contractor

With settlement secured, Sarah and Michael needed to:

• Find specialist EWI removal contractor
• Obtain multiple quotes
• Verify insurance and accreditation

Final Costs

"We're just relieved it's over," Michael says. "Yes, we're still £2,500 down, but our house is safe again. Many people get nothing."

Key Success Factors

What Made This Claim Successful

1. Immediate Documentation

• Photos taken from day one when defects appeared
• All correspondence saved
• Timeline meticulously recorded

2. Independent Evidence

• RICS surveyor report was crucial
• Thermal imaging provided objective proof
• Expert evidence impossible for energy company to dispute

3. Quick Action

• Reported problems within 2 months
• Formal complaint within 6 months
• Legal action within 12 months

4. Multiple Targets

• Didn't rely solely on dissolved installer
• Pursued energy company with regulatory obligations
• Created pressure through multiple defendants

5. Realistic Expectations

• Accepted reasonable settlement rather than pursuing maximum claim
• Prioritized resolution over "winning"
• Understood risks of prolonged litigation

Lessons for Other Homeowners

Do This From Day One

1. Photograph everything before, during, and after installation
2. Create a dedicated folder for all paperwork
3. Log every conversation (date, time, who spoke, what said)
4. Request all certificates and guarantees in writing
5. Get an independent completion survey within 30 days

If Problems Appear

1. Report immediately in writing (email and recorded delivery letter)
2. Commission independent survey (£500-£1,500 well spent)
3. File Trustmark complaint but don't wait for them
4. Identify all potential defendants (energy company, directors, Trustmark)
5. Consult solicitor early (many offer free initial consultation)

Settlement Decisions

• Consider bird in hand vs two in bush
• Factor in stress, time, and uncertainty
• Understand your legal costs exposure
• Don't be too proud to accept reasonable offer

Where Are Sarah and Michael Now?

Their property now has properly applied traditional rendering:

• No insulation (chose not to risk it again)
• Breathable lime render
• Properly maintained damp proof course
• 10-year contractor warranty

"We heat the house the old-fashioned way now," Sarah says with a wry smile. "It costs more, but at least the walls aren't falling off."

Final Thoughts

"Document everything. Act fast. Don't assume authorities will help. Be realistic about settlements. And for God's sake, don't trust 'free' government schemes."

Related Articles

• Complete Compensation Claims Guide
• External Wall Insulation Problems
• NAO Report 2024 Breakdown