Although federal law doesn’t require companies to guarantee their products, when written warranties are offered, they must be available for consumers’ review before the sale takes place. When weighing one model against another, BoatUS recommends that buyers rank warranty coverage on a par with accommodations, horsepower and the price tag.

By law, written warranties must state what’s covered, for how long and what the manufacturer will do to remedy problems. Consumers must also be given information about how to get assistance and how state laws relate to the warranty.

Today’s boat warranties are dramatically different from the one-year take-it-or-leave-it guarantees offered by manufacturers even as recently as five years ago. While some gaps in coverage still exist, it appears that the boating industry is learning a lesson from which the auto industry has benefited, that is, give consumers what they want: broad, comprehensive guarantees of quality and service.

What’s Covered, What’s Not

Boat warranties now combine a multi-year structural guarantee with a shorter guarantee covering defects in materials and workmanship.

Sounds good, right? Well, maybe. Here’s where the fine print — usually titled, “Exclusions” — gets interesting. Structural warranties cover only the parts actually named. If the warranty says the hull is guaranteed, this means that only the fiberglass hull shell is covered, not the stringers or structures that reinforce it from within. If the hull cracks because of a stringer defect, this would not be a covered loss.

Of the companies who responded to our survey, only Carver, Cobalt, Larson, SeaCraft, Sea Ray, Stamas and Tiara Yachts offer more extensive structural guarantees that include decks, stringers or transoms, in addition to hulls. Wellcraft Marine’s is the most extensive, covering “all structural parts and components.”

Osmotic blisters are also widely excluded from protection. Only 16 of the 45 warranties we examined have blister coverage. Of these, some are limited to pro-rated coverage, requirements that the owner pay for the application of an epoxy barrier coat or stipulations that the gel coat can not be altered in any way.

Some of the companies that don’t warranty for blisters told us that they handle these complaints on a goodwill basis. Our experience shows that informal assistance — usually no more than 50% of the repair cost — is most common when original owner boats are less than five years old.

Boat builders warrant the parts and components they manufacture for defects in materials and workmanship. Unlike automobiles, where a manufacturer takes warranty responsibility for everything except the tires, boat builders do not warranty engines and may disclaim responsibility for key components like windshields, cleats, upholstery, appliances and electronic gear, only some of which may be guaranteed by their individual makers.

How Long Does Coverage Last?

Although parts and materials warranties generally last for one year and structural warranties for five years from the date of purchase, a handful of the warranties we reviewed provide substantially longer structural coverage, up to 12 years for Mako boats, 15 for Sport-Crafts and a lifetime of coverage for Larsons, Regals and Anglers. Whose life are they talking about? In most cases, “lifetime” refers to the length of time the original purchaser owns the boat. Larson, however, gives lifetime coverage for the first and second owners.

Until the mid-1990s, only first purchasers qualified for warranty coverage. Buying a used boat, even a late model, meant you were out of luck if it failed. Things have changed. Over half of the 45 current model line warranties we looked at can be transferred to second owners, but protection doesn’t always come cheap. Two-thirds of the manufacturers charge from $50 to a pricey $250 for simply changing owner information in their records.

The Manufacturer’s Promise

Owners frequently ask whether their boat warranty entitles them to a complete replacement or refund of the purchase price if the vessel proves defective. The answer? Probably not. The warranties we looked at state that only components, not entire vessels, will be repaired or replaced at the manufacturer’s discretion.

Federal law merely states that companies have the right to make a “reasonable” number of repair attempts before replacements or refunds must be made. Exactly what is reasonable isn’t defined, so the burden of proof falls on the consumer’s shoulders. For this reason, it is vital to maintain a log of breakdowns and repair attempts.

The Consumer’s Duty

Virtually all boat warranties are “limited,” which means that consumers must follow certain procedures, like returning warranty registration cards within 30 days of the purchase, for policies to go into effect.

All the warranties we reviewed require boat owners to report problems to either a dealer or directly to the factory to obtain service. Without pre-authorization for repairs, owners may find themselves bearing the costs. Repairs that don’t conform to the manufacturer’s recommendations can even void the warranty. Failing to follow the manufacturer’s maintenance procedures can also void the warranty.

Where Do State Laws Come In?

Although written warranties aren’t required by federal law, state laws mandate “implied” warranty protection for all products. Implied warranties are based on the common law principal of “fair value for money spent.” Implied warranties are a powerful consumer protection tool because they permit owners to discover and seek remedies for problems that were present in products at the time they were sold.

The Uniform Commercial Code (UCC), a model law that virtually all states have enacted and covers all commercial transactions, contains the implied warranty provisions. These unwritten warranties can last for up to four years. The UCC, however, gives states the right to match the duration of implied warranties to the duration of companies’ written warranties. To determine how implied warranties work in your state, consult with an attorney or your state consumer protection agency.

For general questions about boat warranties, call the BoatUS Consumer Protection Bureau at 703-461-2856 or e-mail consumerprotection@BoatUS.com.

(c) Copyright BoatUS Magazine, July 2001