Most people do not think about their water heater until it stops working. Knowing the warning signs and your options ahead of time can help you avoid a cold shower and make a smart choice.
Signs it is time to replace
- The tank is more than 8 to 12 years old. Check the serial number or label for the manufacture date.
- Rusty or discolored hot water
- Rumbling or popping sounds from sediment buildup
- Water pooling around the base of the tank
- Hot water that runs out faster than it used to
A leak from the tank itself usually means replacement, not repair.
Tank water heaters
Tank models store and heat a fixed amount of water, commonly 40 to 50 gallons for a family home.
- Lower upfront cost
- Simple installation when replacing an existing tank
- Can run out of hot water during heavy use
- Use energy to keep stored water hot
Tankless water heaters
Tankless models heat water only when you need it.
- Endless hot water, within the unit’s flow rate
- Smaller footprint and often a longer lifespan
- Higher upfront cost, and installation may require new gas lines or electrical upgrades
- Can be more energy efficient
Heat pump water heaters
Heat pump models move heat from the surrounding air into the water. They can use much less electricity than a standard electric tank but need space and work best in warmer areas of the home.
How to save on a replacement
- Get at least three quotes that include removal of the old unit, permits and code-required parts.
- Look for seasonal promotions and installer discounts.
- Check your utility company for rebates on high-efficiency models.
- Ask about the warranty on both the tank and the labor.
Maintenance tips
- Drain a few gallons from the tank once a year to remove sediment.
- Test the temperature and pressure relief valve.
- Set the temperature to about 120 degrees Fahrenheit for safety and savings.
Keep reading: HVAC maintenance checklist and how to hire a contractor. Find licensed pros in our home service provider directory.

