Don’t Hesitate to Renovate

Boat Warranty Basics

Four tips for clearly understanding your boat warranty.

CAPT. FRANK LANIER is an award-winning journalist, boat maintenance guru and owner of Capt F.K. Lanier & Associates, Marine Surveyors and Consultants: Want to make sure your new boat is covered before Murphy and his law has a chance to climb aboard? Check out these four common sense warranty tips every new boat buyer should know.

Boat warranty 101 A boat warranty is simply a manufacturer’s written promise to stand behind its product after the sale. Although required by law to state the basics (what’s covered, how long it’s covered for and how it will be corrected should problems arise), boat warranties are different from the terrestrial versions most buyers are familiar with.

TIP #1: Read the warranty before you buy Reviewing the warranty beforehand allows you to verify the warranty actually delivers the service and protection claimed by the dealer and that it does so for the entire warranty period. For example, the five-year engine warranty offered by manufacturers A and B appear identical, except B uses the term “pro-rated,” while A states its warranty is “non-declining.” It may seem like a small difference, but it’s one that could cost you big money. Pro-rated means B can reduce its liability costs for repairs over the life of the warranty. A’s non-declining warranty coverage is the same on the last day of your warranty as it is on the first, meaning coverage doesn’t decline based on engine age or use.

TIP #2: Don’t assume your warranty covers everything Unlike your new car, boat warranties are actually comprised of numerous warranties offered by the manufacturers of its various components. The builder, of course, warranties the hull, but buyers can receive separate warranties for most anything else, from engines to icemakers. These individual warranties can vary greatly between manufacturers (both in scope and duration) meaning you’ll want to review each carefully to see what’s covered and for how long.

Some manufacturers offer “bow to stern” warranties, a nod to the bumper to bumper coverage of the automobile industry. This means the dealer will either cover any issue that arises or coordinate warranty repairs with the various manufacturers during the all-inclusive warranty period they’re offering (typically five years). Not all such warranties are created equal, however, so make sure your definition of all-inclusive matches theirs.

TIP #3: Understand the claims process Start by asking the who, what, when and where questions. What’s the process for filing a warranty claim? Are there time limits on claims? Do you return to the original place of purchase for repairs or can you use any authorized service facility?

Explore gray areas or unusual circumstances that may not be clearly addressed. Can you void the warranty by doing your own maintenance? If the boat has to be returned to the builder for repair, who pays for the haul-out fees and transportation costs? That massive oil leak at the generator may be covered by the manufacturer, but who foots the bill for cleaning the bilge afterward?

When making a claim, follow the requirements as described in your policy while ensuring the entire process is properly documented. It’s OK to phone your dealer to discuss a problem and how it will be addressed, but always follow up in writing. Paper and/or email trails are crucial, not only to confirm all parties are aware of the issue and in agreement as to how it will be resolved, but also as back-up should a legal dispute arise.

TIP #4: Clarify the rules on “transferable” warranties Builders hype the benefits of transferable warranties (those that can be passed to second owners) as a valuable selling point; however, some have more loopholes and exclusions than a signedin-blood contract with the cloven-hoofed one himself. Make sure you understand the transfer process and documentation requirements, as well as any fees or time limitations to prevent voiding this part of your warranty.

Finally, if you’re considering the purchase of an extended warranty, put on your “let’s make a deal” face before pulling out that wallet. Most manufacturers are almost always hawking some type of incentive when purchasing a new boat: Cash back, free warranty extensions, etc. Planning your purchase around such events can save you money on an extended warranty or even allow you to get it for free. Don’t be afraid to use inclusion of an extended warranty as a bargaining chip to close the sale. ★