While homeowners are often required to get homeowners insurance along with their mortgage, home warranties are a fully optional purchase. Basic coverage starts at about $300 and goes up to $600 for more comprehensive plans, says Bell.

A homeowner can include add-ons to a service contract if needed (e.g., coverage for a swimming pool, various appliances, or an external well).

Although many home warranty companies offer plans to homeowners at any point, the best deals can often be snagged if purchased when you become a first-time home owner. You’re eligible for these plans whether you’re buying a condo or single-family home. And some warranty plans are the “build-your-own” type, which means you can customize a basic plan to cover particular systems (like plumbing) and appliances, or you might include optional add-ons like a tuneup for your HVAC.

“The home warranty offered at the time of the real estate transaction typically offers the most comprehensive coverage and price points, so that’s why it’s the ideal time to lock it in,” Bell says.

At the end of the first year, you usually have the option to renew your home warranty or bail with your service provider.