Boat Warranty

Manufacturer warranties may or may not be transferable, in some cases are transferable for a fee, and in some other cases will be partially transferable. The major portions of a boat warranty usually can be broken down into the following categories:

• Bow to Stern Warranty
• Structural Warranty
• Hull Warranty
• Blister and/or Gel Coat Warranty

A bow to stern warranty covers the entire boat and all its pieces-parts, aside from the engine. Many builders don’t include this in their warranty, some do for a single year, and some builders offer it for a three-, four-, or even five-year period. Bow to stern warranties that last for years at a time should be considered a valuable perk, though they’re not usually transferrable if the boat is re-sold.

Structural warranties are usually limited to the major components of the boat: its hull, deck, bulkheads, stringers, and sometimes other major parts. Again, these vary from manufacturer to manufacturer in duration and in how comprehensive the coverage is. Many builders, however, offer structural warranties for a significant period of time that is often transferrable.

Hull warranties cover just that – the boat’s hull. Catastrophic hull failure is a rare event with modern boats, and this is where you’ll sometimes see extremely long or even lifetime warranties apply.

Blister and gel coat warranties usually apply specifically to blisters, which form when water gets between the gel coat and fiberglass and causes a bubble-like appendage to form. At one time this was a major issue, but with modern boat construction techniques, these days it’s actually very rare to see a boat develop serious blistering issues. Still, it’s nice when a manufacturer has enough confidence in their own craftsmanship to warrant against blisters forming.

Boat or yacht extended warranties are technically extended service contracts. Since people commonly use the word “warranty”, they’re often marketed with that terminology. Warranties are a guarantee made by a manufacturer and cannot be extended or purchased. They must be included with the purchase of a product. Companies offering service contracts, on the other hand, are third party administrators. These companies offer mechanical failure contracts that will pay for the cost of parts and labor if you have a mechanical failure. It is important to understand that an extended service contract is not insurance. It will not pay for damage caused by an accident, weather, or operator error. The coverage of your service contract really depends on the company you purchase your service contract through. It is important to understand that not all the coverage is created equal. Every contract has coverage limits and exclusions and it is important to understand what those are prior to purchasing. Extended Service Contracts can be purchased to protect you after your manufacturer warranty expires or for those customers purchasing a used boat where no warranty exists.

A service contract can save a boat owner thousands of dollars so there is definitely value there. It is important to find the right coverage and company, so you are maximizing the value. Here are some recommendations on finding a quality service contract.

1. Read the coverage. Before purchasing a contract, always read the coverage book or contract to make sure it has comprehensive protection. Not all contracts are the same and each company has differences in the things they include and exclude.
2. Make sure the contract is backed by insurance. It’s not unheard of for extended service contract companies to go out of business. Make sure the coverage is backed by an insurance company. If the administrator of the contract goes out of business, the insurance company will pay for your claims.
3. Check the track record. Since there are a lot of companies that will go in and out of this business, it is important to find a company that has experience dealing with marine claims. Make sure the company has been in the marine business for an extended period of time.

Buying a boat is a big decision and we are all familiar with the concerns of dealing with constant repairs that take away from the joy of boat ownership. Extended service contracts can remove that fear and enhance your ownership experience. It is important to weigh the cost versus the benefits and make sure you are clear about the coverage, so you don’t have any surprises at the repair facility.

How much does a warranty or extended service contract cost?

If you are receiving a warranty with your new boat, there is no cost. By legal definition, a warranty cannot be sold and must be given away as part of the purchase of a product. Extended Service Contracts can range in price based on when you purchase it, the age of your boat/engine, and the coverage included. Remember, if a price seems too good to be true, it probably is, so do your research.

When can I purchase an extended service contract?

It depends on the extended service contract company, but many companies will allow you to purchase a contract at any time as long as your boat is still eligible by their terms. Typically, the cost of coverage is most affordable when the boat is new or at the time of sale. Most companies will require a survey or an inspection of your boat if purchasing a contract on a used boat.

Who performs repairs under a warranty or extended service contract?

For a warranty claim, the boat typically needs to go back to a dealership that sells or services that manufacturer since they will be paid directly from the manufacturer for that work. For extended service contracts, most coverages allow you to use any authorized marine repair facility.

Can my extended service contract be canceled or transferred?

Yes, most contracts can be canceled at any time for a pro-rated refund. There may be a small cancellation fee you need to pay. Yes, most contracts can be transferred if you sell your boat in a private sale. However, a contract can never be transferred to a dealership. So if you trade your boat in you would want to cancel the contract for a refund.