The value of the right IBG, £32,000 network veka claim goes through without quibble

A large, prestigious – and very leaky – conservatory in Berkshire has just become proof positive of the need for the right Insurance Backed Guarantee (IBG).

Network Veka oversaw the payout for the£32,000 remedial job – the organisation’s biggest by far. It was paid for without quibble, even though the ex-member’s guarantee registration had been seriously misleading – and the repair value almost matched the original installation cost.

The claim

It all began at Paul and Jackie Callingham’s Maidenhead home when the conservatory started to leak, damaging a valuable Chinese red slate floor.

The next shock came when Peter Ward, Network Veka’s Southern Region Quality Auditor, arrived on site to discover it was timber, not PVC-U as the guarantee registration had claimed.

‘But there was worse to come,’ Peter continued, ‘We found the roof was just too heavy for the supporting walls so repair was out of the question – we’d have to replace the whole roof.’

The solution came via a bespoke aluminium roof from installer member Barretts Glass of Dorchester.

The real acid test is that the homeowners are delighted. Jackie Callingham said: ‘If it was not for Network Veka and its IBG, we might still be fighting it out.

‘No one quibbled anything and the whole thing went through without worry or fuss. We would recommend Network Veka to anyone.’

IBG Pioneers

Network Veka was one of the pioneers of the IBG but has always stressed that there are good and not-so-good, even within a concept that is supposed by definition to be ironclad.

‘Some are a bit cheaper, it’s true,’ said Peter Ward, ‘But you are talking about literally a few pounds for an installation worth many thousands. It’s a pointless false economy and not worth considering.

We must wonder how many homeowners in this position would have been left in the lurch by some guarantees

‘We must wonder how many homeowners in this position would have been have left in the lurch by some guarantees!

‘If inadequate IBGs start to attract media attention, it will discredit all IBGs, good and bad, and a very valuable form of consumer protection will be lost for ever.’

This one ex-member had left a trail of remedials since it was thrown out of Network Veka and subsequently went bust a couple of years ago. It was also the main reason for the organisation tightening up its vetting of prospective members, as well as the auditing of existing ones.

From this year, the organisation is managing its own IBGs and aims to develop them further, not only by improving the cover but also by investing any surpluses – possibly a six-figure annual sum – directly back into the organisation for the benefit of all members.

Installers’ checklist

For any installers seeking the right IBG, Network Veka outlined a tick-list of items to look out for:

• Does it pay out if the installer ceases to trade voluntarily – not just if it goes bust?
• Is it automatically valid for a full ten years?
• Does it cover installations over £25,000?
• Are the profits ploughed back for the benefit of the installers – not just to an anonymous insurance company?
• s it transferable to new homeowners if the property is sold?
• Does it attract any additional guarantees such as extra cover from hardware suppliers?
• Does it include maintenance literature to keep down remedial work?
• Are there any benefits for on-line registration?

Peter added that other indefinable qualities like flexibility and the simple will to co-operate, not quibble, are even more valuable – as this case has proven admirably:

Our guarantee is based on the organisation so our integrity is too valuable to risk on one dissatisfied customer.

If a guarantee failed to deliver, we would end up covering the remedial from Network funds to preserve our reputation.

In other words, it would hit our own pocket hard if the guarantee were not truly ironclad, so our members are in no doubt we have thought about it very, very carefully’, he said.