The First 90 Days After Closing Are When Most Home Systems Break. Here's What Buyers Don't Know.

Written by:

Heather Hook

Date:

24 Aug 2026

KeyCrew Studio

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Most first-time buyers spend months preparing for closing day. They save for the down payment, research neighborhoods, negotiate the price. What they don’t prepare for is the 90 days that follow. According to Armadillo, one of the few home warranty companies built around modern claims data, the highest volume of system failures, including HVAC, plumbing, and water heater issues, happens within the first three months after a buyer moves in.

That timing is not a coincidence. And for buyers who just emptied their savings on a down payment, it can be genuinely damaging.

Why the First 90 Days Are So High-Risk

When you close on a home, you inherit every system in it. Some of those systems have been sitting unused for months, particularly if the home was vacant during the sale. 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 all fail quickly once a new household starts using them at full capacity.

Matan Slagter, founder and CEO of Armadillo, put it plainly: the data in their systems shows that 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 hit compounds the timing problem. A buyer who just stretched to cover a down payment is also paying their 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.

What the Home Inspection Misses

Home inspections are important, and buyers should get one. 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 of the unit. One inspecting in winter faces the same limitation with cooling. The inspector can note what they see, but they cannot simulate a year of wear.

Slagter explained that Armadillo’s position on this 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. In those cases, the breakdown is covered. The problem arises when buyers do not read their inspection reports carefully, file a claim on something that was documented as a known issue, and then are surprised when coverage is denied. That is the most common source of claim disputes in the industry.

The takeaway for buyers: read the full inspection report before closing, not just the summary. Anything flagged should either be repaired by the seller before transfer, or documented as addressed, before a home warranty kicks in.

The Three Breakdowns

Based on Armadillo’s claims data, the systems that fail most often in the first months after a purchase are:

HVAC systems, particularly in homes where buyers move in during one season and do not test the opposite function until weather forces it. A buyer who closes in June may not discover the heat does not work until November.

Water heaters, which degrade over time and are often near end-of-life in older homes. An inspector can note the age, but age alone does not disqualify coverage if the unit was functional at inspection.

Plumbing issues, which can range from slow leaks that were not visible at inspection to pipes that fail under the load of a new, fully occupied household.

How a Home Warranty Changes the Equation

A home warranty does not prevent systems from breaking. What it does is remove the financial shock from the timing. Buyers who have 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 what is left of their savings.

Armadillo is one of the only companies in the category 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. That 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 in particular, 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.

Armadillo is a modern home warranty company offering flexible coverage for homeowners across the United States. The company is known for its customer-choice technician model and a 4.7-star Google rating in one of the industry’s most complained-about categories.

Disclaimer: This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.

Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.