Some service contracts are not chosen freely. A lender may require one as a condition of a loan, or a lease may ask for proof of coverage on an appliance or system. When that happens, the first comparison is not between sellers. It is between the requirement and the paper on the table.
Get the requirement in writing
Ask the lender or landlord to state the minimum in writing. Find out which item must be covered, what kind of contract is acceptable, and whether the requirement names a type of seller or allows any seller. A verbal answer at signing is hard to check later, so keep the written version.
Check which paper is accepted
Ask whether the contract must come from a specific kind of company, whether it must name a separate administrator, and whether they will review a blank copy of the form before you buy. A warranty from the maker and a separate service contract can both be offered as a way to meet a requirement, but they are different products. Treat them as different until the written requirement says otherwise.
Compare only on the required terms
Set the written requirement beside each offer. Mark whether the offer meets it, whether the offer adds terms the requirement never asked for, and whether any added term conflicts with the lender's or landlord's rules. Extra features are not a reason to choose an offer that is missing the required item.
Keep the approval trail
Save the written requirement, the approval the lender or landlord gives, and the signed contract together. If the requirement changes later, or the contract is sold to another company, this trail is the record you can show.
What this guide has not read
This guide does not read any lender's, landlord's, or seller's paper, and it does not say what any particular contract covers. The state pages on this site name the statute or program that regulates these contracts in each state. Where a state page does not restate a rule, this guide has not read that rule.