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Water expands when heated and also when freezing. When water is heated, it expands by around 4%. For a full water heater, this is one of the main reasons malfunctions occur—the hot water has nowhere else to go but out. Due to the constant expansion and reduction in volume, it’s recommended (required in most places) that an expansion tank be installed.

Any item that can hold on to moisture and encourage mold growth should be discarded and replaced following water damage. Upholstered items, such as armchairs and couches, and soft items, such as mattresses, usually must be thrown away once they've taken on a lot of water. Soft furniture is difficult to dry out, creating an inviting environment for mold.

You may also need to replace hardwood furniture following water damage if you're unable to fully dry it out. If you have appliances and electronics that have been fully submerged in water, particularly sewage, you'll need to replace those, too.

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.

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.