According to Service Roundtable, its extended warranty program differs from other programs in three ways. First, it includes a rebate based on usage that offers savings to contractors, says the organization. Second, the extended warranty includes a requirement for annual maintenance. If a system has not been maintained, the homeowner must pay a deductible direct to the contractor. Contractors can waive the deductible if the homeowner buys a service agreement or keeps it, making the warranty work more profitable. Third, all forms are filed via the Internet, providing the paperwork savings and efficiency that allow the offer of a contractor rebate.

Contractors set the labor rate, which determines warranty pricing. The pricing is the same as contractors would pay if they purchased a similar type of warranty through other sources, says Service Roundtable.