Water Heater Replacement Strategy

[wolf]

Here in CA, replacement & install of waters heaters range from $1300 - $ 1500.
Currently have 6 year old Sears (Kenmore) heater. Purchased extended warranty last year. Just received renewal letter. One year, about $59. Three years, about $139.

Here's the interesting part. Warranty says, if Sears cannot repair the water
heater, they will install and replace. Seems, as long as Sears stays in business, would seem worthwhile to keep purchasing the extended warranty.

Anyone out there try this plan, and what was the outcome.

 

[38Chevy454]

Not sure I would bet on Sears........

 

[Sunset]

Of course they may just stop covering it , once it reaches a certain age.
So if you are not a diy, then the warranty will give you peace of mind until then.

Installing a water heater is pretty easy, the heater only costs about $500 for a good one at home depot (mine has a manufacturer warranty for 9 yrs).
I think CA uses the flexible gas and flexible water connections which would make it a breeze for diy.
Plus you probably need to strap it to the wall for earthquakes.

 

[braumeister]

Not sure I would bet on Sears........

+1
I honestly don't expect them to be around in five years or so.

 

[aaronc879]

+1
I honestly don't expect them to be around in five years or so.

Things don't look promising. They just announced they are closing some stores.
http://finance.yahoo.com/news/sears-macys-closing-heres-look-231812011.html

 

[MichaelB]

Here in CA, replacement & install of waters heaters range from $1300 - $ 1500.
Currently have 6 year old Sears (Kenmore) heater. Purchased extended warranty last year. Just received renewal letter. One year, about $59. Three years, about $139.

Here's the interesting part. Warranty says, if Sears cannot repair the water
heater, they will install and replace. Seems, as long as Sears stays in business, would seem worthwhile to keep purchasing the extended warranty.

Anyone out there try this plan, and what was the outcome.

Are you certain the replacement heater has a value of $1300 - $1500? What does the warranty say?

 

[Fishingmn]

I have replaced many 50 gallon water heaters at my rental properties and the going rate here in MN is more like $850.

 

[FIREmenow]

Things don't look promising. They just announced they are closing some stores.
http://finance.yahoo.com/news/sears-macys-closing-heres-look-231812011.html

Just sold Craftsman brand to Stanley/Black&Decker

 

[zinger1457]

I have replaced many 50 gallon water heaters at my rental properties and the going rate here in MN is more like $850.

About the same here in AZ. I replaced my gas water heater last year and HD wanted $950 for a 40gal water heater and the install. I purchased it for $450 and installed it myself, not too difficult.

 

[John Galt III]

Replaced my leaking water heater a few months ago, myself. $369 for a new 50 gallon Rheem from Home Depot. 7 year warranty. I used Sharkbite flexible hoses. It wasn't exactly a breeze but definitely doable.

 

[mrcanslim]

Whether you decide to buy or not buy extended service agreement based on the cost and the benefit, you should know that all extended warranties are underwritten to provide their service if the originator goes out of business. Remember companies like Circuit City, who sold extended warranties on a lot of their products? All of those warranties were serviced through reserve funds that were required to be put aside out of the original purchase price. With all of that said, it may not be clear whether it's a good value or not. Good luck! Nobody likes a cold shower....Brrrr!

 

[W2R]

Not sure I would bet on Sears........

I agree.

They just announced the closure of one of their two locations near me (and many others in other locations across the country). Doesn't sound like they are doing all that well.

 

[BrianB]

New water heater standards

Energy efficiency standards for water heaters changed in 2015, and most retailers are now out of stock on the old less expensive models.

Our local newspaper runs an occasional column on issues of concern to homeowners. Here's an excerpt from a story :

"On April 16th of this year [2015], new energy efficiency standards from the National Appliance Energy Conservation Act (NAECA) go into effect for water heaters. Starting that day, manufacturers will only be allowed to make water heaters that conform to the new energy standards. Existing water heaters will still be allowed to be sold, but I don’t expect that supply to last for more than a few months."

New Water Heater Energy Standards Structure Tech Home Inspections

I asked a plumber about it. Because of the higher cost of the heater, and more complex installation, the final price for a remove & replace is 50% to 100% more than what it would be for a simple swap-out of the old style units.

We have our water heater and furnace in a small utility closet. When it comes time to replace we will either have to go to a smaller capacity, or switch to a "tankless" design.

Oh yeah, permits add to the total cost - our city requires a plumbing permit for replacing a water heater, it costs about $100!

 

[ERD50]

Energy efficiency standards for water heaters changed in 2015, and most retailers are now out of stock on the old less expensive models. ...

New Water Heater Energy Standards Structure Tech Home Inspections

I asked a plumber about it. Because of the higher cost of the heater, and more complex installation, the final price for a remove & replace is 50% to 100% more than what it would be for a simple swap-out of the old style units.

We have our water heater and furnace in a small utility closet. When it comes time to replace we will either have to go to a smaller capacity, or switch to a "tankless" design.
...

I don't understand a 50% to 100% more for a swap out? The new specs for a <55 Gallon gas water heater ( 40 Gallons seems typical and adequate for most homes) just call for 2" insulation in place of 1" insulation. If your closet is so tight as to not accommodate a couple inches in diameter and height, it could be a problem, but other than that, what's the issue? Shouldn't cost a penny extra to install in most cases.

I got a new water heater along with my new AC/Furnace. It also has a power damper so the flue is only sucking air through the unit when the flame is on. Not sure how much that helps standby losses, and since this was all bundled I'm not sure how much extra it cost, but it is pretty simple mechanism and has a fail-safe lockout - seems like a good idea.

-ERD50

 

[Chuckanut]

My last water heater replacement had to meet the new codes. So....

$65 for a permit for the city and inspection.
$25 for a 'pad' to keep it off the garage floor
$70 for a backflow tank
$50 for an earthquake kit

And, of course the extra labor to install all of the above in addition to the water heater installation labor.

So much for just 'swapping out' the old heater and putting in a new one.

One thing I have found is that labor costs vary greatly from area to area. A fellow in Stumptown Missouri may pay $60 an hour for a plumber, but in LA it might be $150 an hour.

Thankfully my water heaters all seem to last at least 10 years, and usually closer to 15.

 

[Chuckanut]

Here in CA, replacement & install of waters heaters range from $1300 - $ 1500.
Currently have 6 year old Sears (Kenmore) heater. Purchased extended warranty last year. Just received renewal letter. One year, about $59. Three years, about $139.

The problem with those ongoing warranties is that after the device hits a certain age they won't renew the warranty. So, you pay and pay and pay when the the device is relatively new and unlikely to need repair. Then, when it gets to the point that repair or replacement is much more likely, they will no longer offer you the warranty. Not so good

 

[ERD50]

My last water heater replacement had to meet the new codes. So....

$65 for a permit for the city and inspection.
$25 for a 'pad' to keep it off the garage floor
$70 for a backflow tank
$50 for an earthquake kit

And, of course the extra labor to install all of the above in addition to the water heater installation labor.

So much for just 'swapping out' the old heater and putting in a new one.

One thing I have found is that labor costs vary greatly from area to area. A fellow in Stumptown Missouri may pay $60 an hour for a plumber, but in LA it might be $150 an hour.

Thankfully my water heaters all seem to lat at least 10 years, and usually closer to 15.

None of those costs appear to be related to any new efficiency requirements, just updated codes (responding to the other poster who mentioned 50-100% more for efficient units).

The problem with those ongoing warranties is that after the device hits a certain age they won't renew the warranty. So, you pay and pay and pay when the the device is relatively new and unlikely to need repair. Then, when it gets to the point that repair or replacement is much more likely, they will no longer offer you the warranty. Not so good

That's the key. The numbers don't sound bad, but if they won't extend the warranty (or raise the price), when the unit is actually approaching its typical end-of-life, you probably paid a lot for nothing. Just like life insurance for a 90 YO is going to be much higher than for a 40 YO.

-ERD50

 

[mystang52]

Although I'm somewhat handy, I generally don't do any heavy-labor DIY projects anymore. And that would certainly include water heater replacement. In my case, there's no way I'd attempt to bring a new water heater down my basement stairs.................never mind lugging UP the old one!

 

[BrianB]

Water heaters

I don't understand a 50% to 100% more for a swap out? The new specs for a <55 Gallon gas water heater ( 40 Gallons seems typical and adequate for most homes) just call for 2" insulation in place of 1" insulation. If your closet is so tight as to not accommodate a couple inches in diameter and height, it could be a problem, but other than that, what's the issue? Shouldn't cost a penny extra to install in most cases.

For us the extra 2-3 inches diameter and height will make a big difference. We don't have a basement, and the utility closet is so small that putting anything bigger in the space would require realligning the plumbing pipes, gas line, and exhaust.

Also, many natural gas water heaters (the most popular type in MN) are now power vent, so they require air intake be installed to get combustion air to the burner.

Our last replacement 5 years ago was just under $800. Estimate for a new install now would be $1100 to $1200 (non-power vent) to $1500 to $1600 (power vent). Of course inflation accounts for some increase, but higher product cost and more labor definitely affect the total.

 

[dvalley]

I'll need to replace my 15+yr old gas water heater but like a few other neighbors was thinking of upgrading to the small instant electric ones. I can free up room for more tools in my garage.

 

[Happyras]

This week I had a leaking WH at one of our properties, hard to get to, but I bought a two pack at Lowes saving 10%. I put the other one on my recirculating tankless system at home, replacing an oversized tank.

I am beginning to feel a little older now at 62 but I can't let go of DIY most everything.

It took me more than a few hours to change the first one, but it required tearing out a cabinet to get to the hidden heater under the counter. I then modified the access for the future. The second one took me longer because I just hate doing things 1/2 way and I re-configured the plumbing and electrical to make it more elegant. This tank serves as an accumulator/buffer being fed by a tankless gas heater far away. It allows my recirculation system to provide instant HW at that end of the house.

The first tank was installed in 1992, so it was way passed due. It cleaned up the rusty water issue we had there, besides the recent leak. The tank at home was installed in 1996, no issues, but way passed replacement life and had me worried. Going past 20+ years is just not a good idea.

Bottom line, if we paid for someone to do both tanks it would cost us the same as a short cruise. Doing the work myself, the business was not interrupted by some demanding contractor.

 

[Bamaman]

Alabama is a low government state, and we can build a whole house without any inspections, building permits. There are no codes, even.

I see electric hot water heaters for $300-350 in our big box home improvement stores. Seldom do we have electric H/W heaters even if we have natural gas in our homes.

I've got the racer's edge--a 50 gallon hot water heater on each end of our house. We don't wait long for hot water, but whoever installed them wasn't too knowledgeable about energy. 40 gallon tanks would be sufficient for either, and they could have got by with one 50 gallon tank by constantly recirculating the water.

 

[gcgang]

My water heater replacement strategy is, when the water heater stops working, I replace it.

 

[jollystomper]

In our area, it costs about $1000 to have an existing water heater replaced and a new one installed. Getting at least 10 years out of one is $100 per year. We just budget for future replacements. At our age, that is perhaps 3 more at the most.

 

[Winemaker]

I don't buy extended warranties on anything.

In November, I changed out an electronic thermostat/control on a gas water heater 2 weeks before the 6 year warranty was up. The unit failed and customer service diagnosed the issue OVER THE PHONE, and sent me the replacement part to change out. About 3 years ago, customer service diagnosed a thermocoupler issue OVER THE PHONE and sent me the part to change out. So easy, a 14 year old could do both, but I was lucky.

In November 2015, I changed out an electric water heater in one of my rentals. The tenant moved out, she had been with me for 14 years, so I did a complete re-do. I replaced valves, supply lines, faucets, wax seals, commode guts, the works. The old tank had a installation date of July 1996, I bought the building in 2001.

In May of 2016, I replaced the tank in Apt. #2, same building, during another re-do. No installation date on that unit.

Please don't take this as bragging, the water heater gods have been kind to me over the years.