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Your water heater's age can affect your homeowners' insurance policy. Many policies will ask how old the heater is when you first apply for a policy—and they may make you replace a model that's over 10 years old. 

Even if your policy permits you to have an older heater, it may significantly reduce the amount of protection available. If an older water heater suddenly leaks and causes damage to parts of your home, your policy may not cover it.

Replacing an older water heater that requires frequent repairs is almost always worth it. If your fixture is nearing the end of its life span—around 10 to 20 years, depending on the model—replacing a water heater might save you money in the long run. Replacing a water heater generally costs less than repairing a fully flooded basement, and some high-efficiency units pay for themselves thanks to energy savings. Plus, installing a new water heater and upgrading to tankless will boost your home value and make your hot water more readily available, improving comfort for your family.

Whether to repair or replace your water heater is determined by your water heater’s age and condition. If you have an older model reaching the end of its life expectancy or if your water heater has been having problems more frequently than usual, replacement might serve you better. If you’ve been thinking about upgrading to a tankless water heater, then you may not want to spend any further on repairing your old one, either.

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.