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Venting a gas water heater out of the roof is preferable in most cases. Heated exhaust gases naturally rise, so a vertical vent pipe is efficient. If you’re trying to vent through a pipe exiting a wall, the angle of the pipe may be more horizontal than vertical, making the venting system less effective. If you go through a wall, you may need to add a fan to ensure a successful expulsion of the gases outdoors.

The average cost to replace a water heater is around $1,325, with a typical range of $900 to $1,800 for a standard replacement. The final price depends on the type of heater (tank vs. tankless), its size, fuel source (gas or electric), and the complexity of the installation. A simple one-to-one replacement will be on the lower end of the cost spectrum. However, if you are switching from one type of heater or energy source to another, you can expect labor costs to be significantly higher due to the extra work involved. It's also worth considering that while gas and electric heaters may have similar upfront costs, their long-term operating costs can differ based on local utility prices.

Homeowners insurance may cover the repair or replacement of a water heater if it's damaged by a covered peril, such as a fire or a burst pipe. However, policies typically do not cover repairs or replacement needed due to normal wear and tear, old age, or lack of maintenance. For these issues, a home warranty or a manufacturer's warranty may provide coverage. While the policy might not pay to fix or replace the malfunctioning appliance itself, it often covers the cost of water damage restoration caused by the faulty water heater. Always check with your insurance provider to understand the specifics of your policy.

If your gas water heater is over 20 years old, it should be replaced. Gas water heaters can last up to 12 years and while they can exceed this expectancy if well-maintained, a heater that's 20 years old would require replacement. The heater is unlikely to run as efficiently as a new model and could be more expensive to do so.