Most people I know wait until their water heater breaks or leaks before they put any thought into researching or buying a new one.
This emergency type of buying often leads to haste and compromises.
Take the time to learn what your options are. There are several types of water heaters out there from water storage heaters to on demand heaters to tank-less coil and indirect water heaters.
Depending on which style, type, fuel type and venting issues you decide on plan on spending $900 to $3,000 for a quality water heater. Power venting adds $500 to $1000 to this cost.
Water Heater Shopping Tips:
1. Buy an Energy Star–qualified unit with at least a 67 percent efficiency.
2. If you have an electric water heater, call your electric utility and check into off-peak electricity rates. If you decide on this option you may need a second or larger water heater to take advantage of the off-peak rates.
3. If you buy electric: buy a high-efficiency electric model with an insulation rating of R-22 or better.
4. Buy the right size for your home.
5. Look for models with longer warranties (10 to 12 years), this typically translates to mean better insulation, less heat transfer, larger heating elements and anti-corrosion anode rods.