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Installing a water heater without a permit can result in high fines—as much as hundreds of dollars per day, in some areas. It can also void your homeowners' insurance and cause problems when selling your home because it violates local building codes and safety regulations.

Several things can void the warranty for your water heater. Many water heater manufacturers state that installing your own will void the warranty. However, even if you get away with performing the task yourself, incorrect installation, lack of a building permit, and improper repair work, regardless of licensing status, can all render your water heater unprotected by both the manufacturer's warranty and any installation warranties. 

Electric water heaters typically last 10 to 20 years, though proper maintenance can extend their lifespan. If your unit is over a decade old and showing signs of inefficiency—such as higher energy bills, frequent repairs, or leaks—replacement is a smart investment. Tankless models last over 20 years, which can make them a longer-lasting alternative to traditional tank water heaters.

If your water heater is about to celebrate the big 2-0, you may want to consider sending it off to greener pastures. While the water heater may seem to be working well, any conventional, tanked water heater over 10 years of age is at risk of failure. If your water heater is 20 years or older, your best move is to replace your aging heater before it completely breaks down.