It could be the flue pipe is not pushed into the flue termination that goes through the roof.If i remember there were clips that you released and a cover to make sure the flue was well fitted in the termination.I dont know if it is safe to use or not,maybe gary from arc systems will come along ?
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JEFF................
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The steel flue pipe itself is covered by the cardboard heat shield and this needs pulling down to inspect the flue.
The flue pushes fully up inside the plastic flue 'termination' that passes through the roof, this in turn is clamped to the roof inside by a screw collar. This collar is split and prevented from turning by a screw, this needs releasing to be able to then check it's firmly tight.
If flue is not pushed fully up inside, it can allow water to get on the inside of the cardboard, if termination is loose, then water can get onto the outside.
The problem with a loose termination is the roof will be wet and softened, this offers little for the clamping screw to be re-tightened against, infact why it has come loose!, but hopefully this is not the case.
Is it safe to use? sorry I cannot even offer a guess on that without seeing it