Water heaters and home insurance: Four tips for peace of mind

1- Replace the water heater before the end of its useful life

A water heater has a limited useful life of several years. When was yours manufactured? To find out, check the certification plate on the hot water tank. This information is important: On average, insurance companies require that the tank be replaced when it is 10 years old. Each insurer has its own requirements in this respect: Find out more!

Even if the unit seems to be working well after this period, it should still be replaced as a preventive measure. It’s the first step in preventing water damage! In fact, the latter is the leading cause of home insurance claims in Quebec.

Insurers, experts in risk management, prefer an approach based on prevention rather than repair. Generally, they will send you a letter to let you know that your water heater is nearing the end of its useful life. If the unit is not replaced before the next insurance renewal, water damage caused by the water heater will be excluded from coverage. The exclusion rider in question will then be mentioned in a second letter.

2- Inspect the unit regularly

Even if your water heating system isn’t quite 10 years old yet, check it periodically. Certain signs of premature wear and tear should catch your attention. For example, a lukewarm water temperature or less hot water available are two common signs that should not be overlooked. Sometimes, simply replacing a heating component is all that’s required.

However, other signs are more worrying: hot water that appears reddish in colour, condensation on the outside of the water heater or rust on the bottom of the tank all call for action on your part. Unsurprisingly, this means replacing the unit as soon as possible.

3- Consider leasing (instead of buying)

Time for a new water heater? You have several options: Buying is not the only one to consider. You can also lease a hot water tank from certain distributors. Leasing probably makes it easier for you to manage your budget, since you generally have no initial outlay. In many cases, repairs are also covered by the lessee.

Many condominium associations require hot water tanks to be leased. This means that maintenance and replacement are more frequent and routine, thereby avoiding the risk of damage caused by an obsolete unit.

Leasing is therefore an option to consider for greater financial flexibility and peace of mind. However, this peace of mind comes at a price: Long-term leasing is more costly than buying. As another example, leasing a water heater not only makes sense when your unit needs replacing, but also if you’re thinking of moving house in the short term.

4- Have your unit installed by a licensed professional

Bear in mind that if renovations are undertaken by the homeowner without the proper permits or by an unlicensed contractor, the insurer may refuse to cover the resulting damage. In fact, it’s a good idea to have your water heater replaced by a licensed professional, such as a plumber. Plumbers must comply with applicable standards. Make sure he is licensed by the Régie du Bâtiment du Québec (RBQ).

And if it hasn't already been done, ask him to install a pan under the hot water tank to limit damage in the event of a leak.

5- Inform your insurer after replacing your water heater

Now you understand that the age of your hot water tank is one of the risks your insurer needs to analyze. So, when it's time to renew your home insurance, make sure you have all the information you need about your water heating system. This Quick reference will be useful when you prepare your online quote. Finally, remember that it’s always important to keep your home insurance file up to date. Visit My Client Space iA Auto and Home!