The first 90 days after closing a home are the most critical for system failures, according to data from Armadillo, a home warranty company that uses modern claims data. HVAC, plumbing, and water heater issues peak in this window, catching many buyers off guard. This timing is not coincidental; it's a period when systems that have been idle or underused during the sale suddenly face full household usage, leading to breakdowns.
When a home is vacant, its systems may sit unused for months. An HVAC unit not tested under real conditions, a water heater that has been idle, or plumbing not fully pressurized can fail quickly once a new family starts using them at full capacity. Matan Slagter, founder and CEO of Armadillo, notes 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 compounds the problem. Buyers who have just stretched to cover a down payment are also facing their first mortgage, utility setup, and moving costs. An HVAC replacement that runs north of $10,000 or a water heater failure at $2,000 and up is not a manageable surprise in that window. This can be genuinely damaging for those who have emptied their savings.
Home inspections are essential, but they have limitations. An inspector checking an HVAC system in summer cannot meaningfully test the heating side; in winter, the cooling side is similarly untested. The inspector can only note what they see, not simulate a year of wear. Slagter explains that Armadillo’s position is clear: if a system was not flagged in the inspection report and fails after move-in, the reasonable assumption is that the buyer could not have known, and the breakdown is covered. The most common source of claim disputes is when buyers do not read their inspection reports carefully and file a claim on something that was documented as a known issue. The takeaway for buyers is to read the full inspection report before closing, not just the summary, and ensure any flagged items are repaired or addressed before a warranty takes effect.
Based on Armadillo’s claims data, the systems that fail most often in the first months 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 range from slow leaks that were not visible at inspection to pipes that fail under the load of a new, fully 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 moving 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 only 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 not complicated: a few hundred dollars in annual coverage versus a potential five-figure repair bill in a moment when there is almost no cash left to absorb it. As Slagter puts it, the data shows that the first 90 days are the highest-risk period, and being prepared can make all the difference.
