My device was water damaged and now everything seems to work fine except for one function, do I still need the full water damage service?

Yes. Though only one function may not be working, it could be caused by a variety of things. For example, if your home button is not functioning properly, the issue may be caused by the home button flex, the lower dock connector assembly, the Logic board, or any combination of the three since the phone was water damaged. If the device has not been water damaged, a home button issue is almost always caused by the home button flex, however since the phone has been water damaged, standard rules do not apply.