The first 90 days after closing on a home are often the most critical for new homeowners, according to data from Armadillo, a home warranty company that uses modern claims data. This period sees the highest volume of system failures, including HVAC, plumbing, and water heater issues, which can be financially devastating for buyers who have just spent their savings on a down payment.
The timing is not coincidental. When a home is sold, many systems may have been sitting unused, especially if the property was vacant. An HVAC unit that hasn't been 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 rates higher than any other point in a homeowner's tenure.
The financial impact is compounded by the timing. Buyers who stretched to cover a down payment are also paying their first mortgage, setting up utilities, and absorbing moving costs. An HVAC replacement can cost over $10,000, and a water heater failure can be $2,000 or more, which is not a manageable surprise in that window.
Home inspections are important but not foolproof. A home inspector checking an HVAC system in the summer cannot meaningfully test the heating side, and one in winter faces the same limitation with cooling. They can note what they see but cannot simulate a year of wear. Slagter explains that Armadillo's position is clear: if something 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. However, disputes often arise when buyers do not read their inspection reports carefully and file claims on documented issues. The takeaway is to read the full inspection report before closing, not just the summary, and ensure any flagged items are addressed.
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 can range from slow leaks to pipes that fail under the load of a new, fully occupied household.
A home warranty does not prevent breakdowns but removes the financial shock. Buyers with coverage in place before moving in can file a claim and get the issue resolved without depleting their savings. Armadillo is one of the few companies that offer a customer-choice technician model, allowing homeowners to use their own trusted plumber or HVAC tech. This flexibility is a reason the company has a 4.7-star Google rating, compared to the industry average of two to three stars. For first-time buyers, the post-closing window is when a home warranty earns its value most clearly. 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 makes the decision straightforward.
