Compensation Claims: Step-by-Step Guide for Homeowners

If you've suffered damage from poorly installed insulation, you have legal rights. This comprehensive guide explains who you can claim against, what you can recover, and the step-by-step process to maximize your compensation.

What You Can Claim For

Direct Costs

• Removal costs: Full cost of removing failed insulation (£8,000-£30,000 typical)
• Remediation work: Repairing damage to walls, timbers, and structure
• Alternative accommodation: If property uninhabitable during repairs
• Survey and assessment fees: Professional reports needed for claim
• Legal costs: Solicitor fees (often recoverable if you win)

Consequential Losses

• Property value reduction: Diminution in value due to failed insulation
• Lost rental income: If you cannot rent the property
• Failed sale compensation: If buyer withdrew due to insulation issues
• Increased energy bills: If insulation made efficiency worse
• Health expenses: Medical costs if mould caused illness

General Damages

• Stress, inconvenience, and loss of amenity
• Usually £2,000-£10,000 depending on severity and duration

Who You Can Claim Against

1. The Installer

Your primary target for most claims.

Grounds for Claim

• Breach of contract: Failed to complete work to professional standards
• Negligence: Careless workmanship causing damage
• Misrepresentation: False claims about quality or suitability

Evidence Needed

• Original contract or agreement
• Installation certificate (if provided)
• Photos of defects
• Independent surveyor report confirming poor workmanship

Time Limit

• England & Wales: 6 years from completion
• Scotland: 5 years from completion
• Northern Ireland: 6 years from completion

Common Problems

• Company dissolved: Many installers cease trading to avoid liability
• No insurance: Limited liability companies may have no assets
• Subcontractors: Company you contracted may claim they didn't do the work

2. Trustmark (Quality Assurance Body)

If the installer was Trustmark registered.

Trustmark Insurance Scheme

• Provides up to £25,000 protection per job
• Only available if installer has ceased trading
• Must have reported defects while installer was trading
• Claim must be made within 6 months of installer insolvency

Grounds for Claim Against Trustmark Itself

• Negligent certification of incompetent installer
• Failed to inspect as required
• Approved obviously defective work

Note: Claims against Trustmark directly (not its insurance scheme) are complex and require specialist legal advice.

3. Energy Company (ECO4/GBIS Schemes)

The energy company that funded your installation.

How to Identify Your Energy Company

• Check your installation paperwork
• Contact the installer (if still trading)
• Request information from Ofgem

Grounds for Claim

• Failed to ensure adequate installer vetting
• Inadequate quality oversight
• Misrepresentation of benefits

Energy Company Remediation Obligations

Energy companies have obligations under ECO4 regulations:

• Must ensure work meets building regulations
• Liable if installer fails and has dissolved
• Required to remediate if you report within 2 years

4. Material Manufacturers

If the materials themselves were defective.

Product Liability Claims

• Render systems failing prematurely
• Insulation boards degrading
• Adhesives not bonding properly

Challenges

• Difficult to separate material failure from installation defect
• Manufacturers claim installer error
• Requires specialist testing (expensive)

5. The Government

Rare but possible in extreme cases.

Potential Grounds

• Negligent design of ECO4/GBIS schemes
• Failed duty of care in scheme oversight
• Misrepresentation of scheme safety/quality

Note: Claims against government are exceptionally difficult and expensive. Only pursue with specialist public law solicitors.

Step-by-Step Claims Process

Phase 1: Evidence Gathering (Week 1-2)

Document Everything

1. Take comprehensive photos and videos of all defects
2. Date-stamped images from multiple angles
3. Close-ups and wide shots showing context
4. Before photos if available

Gather Paperwork

• Installation contract/agreement
• Completion certificates
• Guarantees or warranties
• All correspondence with installer
• Building control certificates (if applicable)

Initial Notifications

• Write to installer reporting defects (recorded delivery)
• Keep copy of all communications
• Note dates and details of phone conversations

Phase 2: Professional Assessment (Week 2-4)

Commission Independent Survey

Essential for any claim. You need:

• RICS surveyor or chartered building surveyor
• Specific experience with insulation failures
• Report must be detailed and court-compliant
• Cost: £500-£1,500 (recoverable if you win claim)

What the Report Must Include

• Detailed description of defects
• Expert opinion on cause
• Assessment of whether work met professional standards
• Cost estimate for remediation
• Assessment of diminution in property value

Additional Specialist Reports (If Needed)

• Thermal imaging survey: Shows moisture penetration (£200-£400)
• Structural engineer: If structural damage suspected (£800-£2,000)
• Damp specialist: For severe moisture issues (£300-£600)

Phase 3: Formal Claim (Week 4-6)

Letter Before Action

Required before court proceedings. Must include:

• Full details of the claim
• Summary of defects and evidence
• Amount claimed (broken down)
• Deadline for response (typically 14-30 days)
• Warning that court proceedings will follow if no resolution

Settlement Negotiations

Many cases settle at this stage. Expect:

• Counter-offers below your claim amount
• Installer may offer to re-do work (often not acceptable)
• Insurance company may get involved
• Negotiations can take 2-6 months

Phase 4: Court Proceedings (If Necessary)

Small Claims Court (Claims under £10,000)

• Can represent yourself
• Lower costs and formality
• Court fee: 5% of claim value (up to £455)
• Loser doesn't usually pay winner's legal costs

Fast Track (£10,000-£25,000)

• Solicitor highly recommended
• Loser typically pays winner's legal costs
• Trial within 30 weeks of defense filing
• One-day hearing typical

Multi-Track (Over £25,000)

• Solicitor essential
• Lengthy process (18-24 months typical)
• High costs (but recoverable if you win)
• Expert evidence crucial

Funding Your Claim

No Win No Fee (Conditional Fee Agreement)

• Solicitor takes percentage of damages if you win (typically 25-35%)
• No fee if you lose
• Best for strong cases with defendant who can pay
• Not all solicitors offer this for insulation claims

Legal Expenses Insurance

• Check your home insurance policy
• May cover legal costs up to £50,000-£100,000
• Must notify insurer before starting claim
• Insurer may require you to use their panel solicitor

Self-Funding

• Full control over process
• Costs recoverable if you win
• Risk: Lose and pay own costs (and potentially defendant's)
• Budget £3,000-£15,000 for solicitor fees in contested case

Maximizing Your Compensation

Do's

• Act quickly: Don't wait for damage to worsen
• Mitigate losses: Take reasonable steps to prevent further damage
• Keep records: Document all costs and correspondence
• Get multiple quotes: For remediation work (shows reasonableness)
• Seek specialist advice: Early legal consultation saves money

Don'ts

• Don't delay reporting: Damages claims reduce if you wait
• Don't accept first offer: Initial offers typically 30-50% of claim value
• Don't let installer "fix" without agreement: May void your rights
• Don't sign anything: Without legal advice, especially settlement offers
• Don't remove insulation yourself: Destroys evidence and may worsen damage

Realistic Compensation Amounts

Class Action Lawsuits

Several law firms are organizing group litigation against:

• Major ECO4 installers
• Trustmark
• Energy companies

Advantages of Joining

• Lower individual costs (shared legal fees)
• Stronger negotiating position
• Access to top litigation solicitors

Disadvantages

• Longer timescale (2-5 years typical)
• Less control over settlement terms
• May receive average settlement rather than individual assessment

Get Legal Advice

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