Marine Warranty Glossary
Plain-language definitions for the terms you'll see in marine extended warranty contracts.
- Boat Extended Warranty
- An extended marine service contract providing coverage beyond the manufacturer's original warranty.
- Claim Authorization
- The approval issued by the warranty administrator after a licensed marine technician documents a covered failure. The authorization number lets the repair shop perform the work and bill the warranty directly.
- Component Coverage
- A plan structure that lists every covered component explicitly. If it isn't listed, it isn't covered.
- Coverage Limit
- The maximum dollar amount a marine warranty plan will pay — either per claim, per component, or aggregated across the contract term. Limits are spelled out in the service contract.
- Deductible
- The fixed amount the boat owner pays per claim before the marine warranty plan covers the remaining authorized repair cost. Deductibles vary by plan and are disclosed in the service contract.
- Exclusionary Coverage
- A plan structure that covers everything except items explicitly listed as excluded — typically the broadest coverage.
- Lower Unit
- The submerged gearcase of an outboard or sterndrive that contains the gears, driveshaft, and propeller shaft. Lower-unit damage is commonly caused by impact or seal failure and is typically covered when not caused by neglect.
- Marine Protection Plan
- A general term for an extended marine service contract that protects against mechanical and electrical breakdown of covered systems on a boat or yacht for a defined term.
- Marine Service Contract
- A contract between a boat owner and a service provider covering specified mechanical and electrical breakdowns for a defined term.
- Mechanical Breakdown Coverage
- Coverage for the failure of a covered mechanical component due to defect or wear, excluding maintenance items.
- Powerhead
- The upper internal-combustion section of an outboard motor — block, pistons, crankshaft, cylinder head, and valvetrain. Powerhead failure is among the most expensive marine engine repairs and is a frequently covered claim.