What type of real estate agreement provides coverage for repairs and appliances?

A service contract is a specific type of real estate agreement that provides coverage for repairs and appliances. This type of contract is designed to protect homeowners or renters by ensuring that if certain appliances or systems break down, the service provider will cover the costs of repairs or replacements. Unlike an insurance policy, which typically covers damages from unexpected events, a service contract focuses on the maintenance and operational aspects of home appliances and systems, offering peace of mind to homeowners.

In contrast, a lease is a rental agreement that outlines the terms and conditions of renting a property, while a sales agreement pertains to the transfer of ownership of real estate. An insurance policy provides broader coverage against risks like fire or theft, but it does not specifically target repairs or servicing of appliances or systems within the home. The distinction of a service contract lies in its targeted protection for wear and tear, which is why it is the appropriate choice for this question.