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Water heater installation code requirements are in place to keep your family and home safe. Water heaters that are installed wrong can simply not work. However, that's an, if you're lucky, type of situation. More commonly, incorrectly installed water heaters pose a real threat from carbon monoxide poisoning, gas leaks, water leaks, and even explosions. 

No, boilers and water heaters are not interchangeable because they serve different primary functions. Boilers are used for central heating systems, providing hot water or steam to heat your home. In contrast, a water heater's purpose is to supply hot water for daily household use, such as for faucets and showers. A water heater alone cannot supply the warm water or steam needed for a central heating system.

While they are not interchangeable, it is common to have both a boiler and a water heater. In fact, a conventional boiler often works best when a water heater system is already in place. The two systems can be combined to provide both heating and hot water, either by pairing a boiler with an indirect water heater or by installing a premade combination boiler-water heater unit. For home heating, some homeowners may also opt for a furnace instead of a boiler.

Depending on the brand of water heater, you may need to install an expansion tank in order to meet the conditions for warranty coverage. It’s important for consumers to read the fine print of the warranty to see if an expansion tank is necessary. Even if an expansion tank isn’t required for the warranty, it’s usually mandated by building codes—although not for tankless water heaters.

The good news is that most home warranty plans cover hot water heaters, regardless of whether you have a tank or a tankless model. Your hot water heater should be covered by your home warranty because it's considered an essential home appliance.