The first 90 days after closing on a home are when most home systems break, according to data from Armadillo, a home warranty company. 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 you close on a home, you inherit every system in it. Some systems may have been sitting unused for months, especially if the home was vacant during the sale. An HVAC unit not tested under real conditions, a water heater that sat idle, or plumbing that hasn't been fully pressurized can fail quickly once a new household 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 higher rates than any other point in a homeowner's tenure.
The financial hit compounds the timing problem. A buyer who just stretched to cover a down payment is also paying the first mortgage, setting up utilities, and absorbing 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.
Home inspections are important, but they are not a guarantee that everything is functional. An inspector checking an HVAC system in the middle of summer cannot meaningfully test the heating side, and vice versa. Slagter explains that Armadillo's position is clear: if something was not flagged in the home inspection report and it fails after move-in, the reasonable assumption is that the buyer could not have known, and the breakdown is covered. The problem arises when buyers do not read their inspection reports carefully and file a claim on something documented as a known issue. The takeaway is to read the full inspection report before closing.
Based on Armadillo's claims data, the systems that fail most often in the first months are HVAC systems, water heaters, and plumbing issues. HVAC failures are common 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 to pipes that fail under the load of a new 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 and get the issue resolved without depleting savings. Armadillo is one of the only companies that gives homeowners the option to choose their own technician or use Armadillo's network of vetted technicians, as detailed at armadillo.one. 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 when there is almost no cash left to absorb it.
