Which is better for you? Home Warranties vs Service Agreements

Whether you are building a new home, or have been experiencing breakdowns of your current systems or appliances, there are ways homeowners can help protect their home while saving money down the road. Home warranties and service agreements are two great options to help keep your home’s systems and appliances protected. 

At ServiceOne, we offer a variety of service plans including home warranties and service agreements. With all of our plans, our goal is to keep your home's systems and appliances working as they should all year long while saving you money along the way. Below, we dive into the differences between a home warranty vs service agreement, as well as highlight some things to consider when deciding between the two. 

Home Warranties

Home warranties are similar to an insurance plan where homeowners pay a “premium” to obtain home warranty services. With a home warranty, your home stays protected. Whenever an appliance breaks down or you find issues with any of your home systems, your home warranty company will come and get your problems fixed!

Service Agreements

A service agreement is a written contract between a service provider and the customer. A home service agreement covers all major home appliance and system repairs, including your home’s plumbing, heating and cooling and electrical systems.

Home Warranty vs Service Agreement

Home warranties and service agreements are similar, which can be confusing when choosing one or the other. There are some differences between the two that set them apart from each other. A service agreement will cover all of the costs of labor and parts on repairs for many appliances and home systems, depending on your plan. However, service agreements do not cover full replacement costs, whereas a home warranty service does. Home warranties are designed to cover what home insurance doesn’t cover. They protect your home’s appliances and help save you money in times of unexpected damage or failure.

Below, we highlight some things to consider when choosing between a service agreement and a home warranty. 


In terms of price, it really depends on what you want covered. Service agreements are generally cheaper, but the price is ultimately dependent on what is included. On average, home warranties will cost around $600 per year. On the other hand, service agreements cost anywhere from $240 to $400 a year. 

The life of your appliances and systems

If you have a new home with new appliances, a home warranty will more than likely be your best option. This will help protect your appliances if any unexpected problems occur early on in your appliance’s life. However, if you have older systems or appliances that may be prone to more repairs, a service agreement is more than likely the better option. 

At ServiceOne, we offer both home warranty plans and service agreements to homeowners and home realtors looking to protect their home’s systems and appliances and save money down the road. If you have any questions regarding either of these offerings, of the differences between a home warranty vs service agreement, please contact our team! We are happy to help answer any questions you may have. 

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