We are looking to replace our original Andersen wood windows with vinyl. We got several estimates, and most of them quoted inserts only. Our neighbors who have already replaced their windows, we know all went with the inserts. We were going to decide on inserts too, until today we saw a friend's windows.

First picture below is interior.

Second picture is exterior.

Is inserts installation supposed to look like this?? To be fair, my friend's windows were installed 5 years ago. Very nice looking high end vinyl windows though. But when the new frame was put into the old one, shouldn't the corner be covered up completely? Also the exterior, was it just caulk around the perimeter? That would not last very long, I would think.

I would love to hear your thoughts please. Thanks!