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The size needed for your expansion tank is determined by the size of your home's water heater. Expansion tanks are available in 2-gallon and 4.5-gallon sizes. A 2-gallon tank will be appropriate for water heaters up to 50 gallons. An adequately sized tank should have a volume that equals 2% to 5% of the water volume within the system. A plumber can evaluate your home's water pressure, water heater size, and other factors to provide suggestions for picking out the best expansion tank.

Unless you have previous plumbing experience or extensive experience with water heaters, you should avoid replacing your electric water heater yourself. This process involves disconnecting wiring and parts from the old water heater and reinstalling them onto the new one, among other difficult tasks. This job is best left to the pros to make sure that everything is connected correctly to avoid serious leaks or malfunctions.

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.

You can and should vent the gas from your hot water heater to the outside of your home. Traditionally, these gases were vented back to other gas appliances, like stoves or furnaces, but many jurisdictions have outlawed this practice due to the risks it provides. 

Most water heaters today use atmospheric venting that exhausts the gas out of the home through a pipe.