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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.

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.

If you have a tank-type electric water heater, it runs regularly to keep the water at the desired temperature. If you live in a home where you don’t use much hot water, it could seem wasteful to run power to heat water that you’re using infrequently. You could save some power by using a smaller tank, insulating the tank, or lowering the temperature of the water heater.

A water heater is one of the heaviest hitters in your home, and it needs as much power as possible to help it run efficiently and effectively.

Your water heater should be on its own dedicated circuit breaker, with no other power sources running to it. This is required to meet the National Electric Code–and to ensure it runs as efficiently as possible.