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When replacing an old unit, you might want to switch from a gas water heater to an electric water heater or vice versa. To do this, you will likely need to add infrastructure to the area. For example, you likely don’t have a gas line that served your old electric water heater. You’d have to call a plumber to put in a new gas line. If you’re replacing a gas unit with an electric one, the plumber will need to safely cap the old gas line. You will then need an electrician to add wiring for the new electric unit.

While not all homes require a hot water heater expansion tank, they are necessary in most newer homes and are often mandated by local building codes. Codes typically require an expansion tank if your plumbing system is a 'closed-loop' system, which often includes a backflow preventer or pressure regulator on the main water line. Some municipalities have specific requirements. Installing an expansion tank on a closed system is crucial, as it prevents excess pressure that can damage your water heater and other appliances, potentially shortening their lifespan. However, tankless water heaters do not require an expansion tank.

On average, a tankless water heater should last between 10 and 15 years. Its lifespan will be affected by how much it's used, the effect of weather where your home is on the unit—colder is harsher and will shorten lifespan—and if the heater is maintained appropriately and regularly. There are many signs your water heater needs to be replaced, so pay attention to anything that changes with your heater or hot water.

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.