The first 90 days after closing on a home are when most home systems break, according to data from Armadillo, a home warranty company that uses modern claims data. The company reports that the highest volume of system failures—including HVAC, plumbing, and water heater issues—happens within the first three months after a buyer moves in. This timing is not a coincidence, and for buyers who have just spent their savings on a down payment, it can be financially damaging.
When a home is sold, its systems may have sat unused for months, especially if the property was vacant. An HVAC unit that was not tested under real conditions, a water heater that sat idle, or plumbing that has not been fully pressurized can fail quickly once a new household starts using them at full capacity. Matan Slagter, founder and CEO of Armadillo, noted that their data shows plumbing, water, and electrical issues cluster around move-in at rates higher than any other point in a homeowner's tenure. Buyers simply do not expect it.
The financial impact is compounded by the timing. A buyer who stretched to cover a down payment is also paying their first mortgage, setting up utilities, and absorbing moving costs. An HVAC replacement can run north of $10,000, and a water heater failure costs $2,000 or more. Such expenses are not manageable surprises in that window.
Home inspections are important, but they are not a guarantee that everything is functional. A home inspector checking an HVAC system in the middle of summer cannot meaningfully test the heating side, and inspecting in winter limits cooling tests. Inspectors can only note what they see, not simulate a year of wear. Slagter explained that Armadillo's position is clear: if something was not flagged in the home inspection report and fails after move-in, the reasonable assumption is that the buyer could not have known, and the breakdown is covered. However, the most common source of claim disputes is when buyers do not read their inspection reports carefully and file claims on documented issues. The takeaway for buyers is to read the full inspection report before closing, not just the summary, and ensure any flagged issues are repaired or addressed before a home warranty kicks in.
Based on Armadillo's claims data, the systems that fail most often in the first months after purchase are HVAC systems, water heaters, and plumbing. HVAC failures often occur when buyers move in during one season and do not test the opposite function until weather forces it. Water heaters degrade over time and are often near end-of-life in older homes. Plumbing issues can range from slow leaks not visible at inspection to pipes failing under the load of a newly occupied household.
A home warranty does not prevent systems from breaking, but it removes the financial shock from the timing. Buyers with coverage in place before they move in can file a claim, choose whether to use Armadillo's network of vetted technicians or bring their own, and get the issue resolved without depleting their savings. Armadillo is one of the few companies that gives homeowners both options upfront. The customer-choice technician model, detailed at armadillo.one, means buyers who already have a trusted plumber or HVAC tech are not forced to use a stranger from a dispatch network. This flexibility is one reason the company carries a 4.7-star Google rating in an industry that averages between two and three stars.
For first-time buyers, the post-closing window is when a home warranty earns its value most clearly. The math is simple: a few hundred dollars in annual coverage versus a potential five-figure repair bill at a time when there is almost no cash left to absorb it.
