My board just stopped working. No crash, no water, just a red flashing light of death. The diagnostic said “MOSFET Failure.” The board was 13 months old (1 month out of warranty). I filed an insurance claim for “Mechanical Breakdown.” They sent a denial letter faster than I could blink.
Key Takeaways
- Insurance is for Accidents: Insurance covers external events (crash, fire, theft). It does not cover internal failures (bad chips, worn belts, dead batteries).
- Extended Warranties: Companies like CPS or Mulberry sell “Extended Warranty” plans. These do cover controller failure. They are distinct from theft insurance.
- The “Wear and Tear” Exclusion: Insurers classify component failure as wear and tear or latent defect.
- Fire Exception: If the controller failure causes the board to catch fire, the fire damage is covered. The controller itself is usually not.
The “Why” (Mechanical Breakdown)
“We do not insure for loss caused by… mechanical breakdown, latent defect, or inherent vice.”
If the product just breaks because it was built cheaply or used heavily, that is not an insurable risk.
The Investigation: Who Fixes the Brick?
I looked at options for a dead board.
1. The Manufacturer
- Stance: “Warranty expired. You can pay $600 for a new controller module.”
2. Specialty Insurance (Velosurance)
- Stance: “Was it damaged in a crash?” No. “Then we can’t help.”
3. Extended Warranty (Clyde/Mulberry)
- Stance: If you bought this at the time of purchase, they cover it. They are basically an insurance policy for mechanical breakdown. If you didn’t buy it then, you can’t buy it now.
Comparison Table
| Issue | Standard Insurance | Extended Warranty (CPS) | Manufacturer Warranty |
| Controller Dies | No | Yes | Yes (If active) |
| Battery Degrades | No | No (Usually) | No |
| Crash Damage | Yes | No | No |
Step-by-Step Action Plan
- Check Credit Card Perks: Some premium cards (Amex Platinum, Chase Sapphire) extend the manufacturer’s warranty by 1 year. If you bought the board with that card, file a claim with the card benefit administrator, not your insurance.
- Diagnose Before Claiming: If you say “it just died,” insurance denies it. If you say “I hit a rock and then it died,” insurance might cover it as impact damage. Be honest, but understand the trigger.
- Repair vs. Replace: In 2026, Right to Repair is strong. Independent shops can often fix a controller for $200 (soldering new MOSFETs) vs $600 for a new unit.
FAQ
Can I buy a warranty now?
Generally no. You have to buy it within 30-60 days of purchasing the board.
[IMAGE: Close up of a scorched circuit board (MOSFET) inside a controller housing]