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Definition of exclusion:
ex·clu·sion
ikˈsklo͞oZHən/
noun
1. An item or risk specifically not covered by an insurance policy or other contract.
1. An item or risk specifically not covered by an insurance policy or other contract.
plural noun: exclusions
- "exclusions can be added to your policy"
You've had a breakdown, and your warranty claim was denied. Why? Well it would have been denied based on one of the specifically listed exclusions within your contract. Every manufacturer and warranty provider has their own set of exclusions, however some have more than others. Here are some typical ones that would likely apply to any and all warranties:
- Normal wear & tear - We touched on this in our last blog post - regular, expected wear or failure of parts are unwarrantable.
- User misuse or abuse - The failure is caused by water damage, an accident, getting air time, or even general use beyond tolerance.
- Modification - Modifications won't necessarily outright void your warranty but you may be denied if it's possible your modification impacted the failed part.
- Maintenance - Inability to prove that you did the maintenance in accordance with the owner's manual and manufacturers requirements.
- Act of war - If a bomb is dropped on your ATV.. can't help ya.
- Design defect - This is a tricky one. Ultimately what the manufacturer is saying is that just because they designed something poorly, that doesn't mean that the failure is a manufacturing / workmanship defect. A poor design may still function and fail exactly as expected.
- Maintenance items - This is different than normal wear and tear. Normal wear and tear states that if a part fails, whether it is a maintenance item or not, due to normal wear and use then it is not covered under warranty. Maintenance items are listed required services such as brake pads, spark plugs, and oil changes.
- Non-covered components - This is where Exclusionary vs Listed Parts warranty becomes important. With exclusionary, everything is covered unless it is specifically excluded, whereas listed parts coverage lists the exact parts that are covered. A good rule of thumb is that listed parts offers less coverage than exclusionary.
Most manufacturers factory warranties are exclusionary. However, in some cases the extended manufacturer warranty may be listed parts rather than exclusionary. Be aware of what you are purchasing, and what you are selling. If you have an Assurance - Elite warranty by Axis Dealer Solutions, or, this is what you sell, then don't worry, it is exclusionary!
