The inspection report mentioned that the water heater flue diverter was incorrectly positioned and that exhaust fumes were detected. The inspector advised that further evaluation and repair by a qualified professional was needed to promote safety.
The inspector also noted that a water heater’s typical life expectancy was 5-15 years. However, he added, “Serviceable life is impossible to predict and is based on operation and maintenance. Budget for eventual replacement.” We should have paid more attention to that observation.
TPR (Temperature Pressure Relief) Valve
The report also offered some advice on regular maintenance involving the TPR valve: Some TPR valve manufacturers recommend lifting the lever immediately after installation and at least once a year to ensure that waterways are clear.
By lifting the lever, water flows through the safety valve and flushes out the discharge pipe. If water does not flow through the valve or fails to shut off when reset, immediately turn off the power or gas to the water heater and have a qualified plumber repair the issue.
In addition, water heaters should be thoroughly flushed to remove sediment buildup upon buying a property. He also recommended that a qualified plumber inspect a water heater every three years.
Replacement Cost Estimates
The first plumbing company to arrive was Pure Plumbing, which we had previously worked with. The repairman immediately recommended replacing the unit because “repairing an internal leak was not possible.”
We immediately verified this claim by googling and found this:
“If the leak is here [in this diagram], good news, the repair is simple and relatively inexpensive. You just need a plumber to replace the faulty drain valve. However, if the leak is coming from the tank, you’ll need to replace the water heater.”— Ragsdale Heating, Air, Plumbing
Dallas, GA
So, that was correct. Now on to the cost estimates:
- $2,584 – YES! Air Conditioning, Heating, Plumbing & Electric, referred to us by Lowe’s, submitted two estimates. A higher estimate was $2,858, the low one was $2,584. We had already selected the water heater, so it was just a matter of getting an installation estimate. Like Yelp, Lowe’s, submitted our bid request to a host of plumbers who called and texted. We chose YES! because they were the most high-profile in Las Vegas. See “Project Estimates” below to get more details on the YES! estimate.
- $2,990 – Pure Plumbing submitted three estimates ranging from $4,200 for a “40 Gallon Standard Plus+ Package Rheem to $2,990 for a “40 Gallon Standard Package Rheem.” Pure Plumbing also submitted an estimate for installation that only included parts but no water heater or city permit for $959.70. See “Project Estimates” below for more details on the Pure Plumbing estimate.
- $3,200 – We used Yelp to get a recommendation for water heater installers. We chose the only one Yelp suggested, which also came with a Yelp guarantee: Uncle E’s Plumbing, a business run by Elvis Alarcon. The estimator, Mike, provided much more helpful information than Pure Plumbing or YES! Mike reported that the glass lining at the bottom of the tank was cracked. Uncle E’s bid included a Ruud water heater for $3,200. However, when we asked how much it would cost to install a water heater we might buy from Lowe’s, the cost came down to $830 without a permit or $1,000 with parts and a permit.
Project Estimates
The lower YES! estimate was based on the Model G9-T4040NVR — an AO Smith 40-gallon tall 9-year 40,000 BTU natural gas water heater that sells for $719 at Lowe’s. The higher estimate used the same unit specs but offered a 12-year warranty. We had preselected the AO Smith brand at Lowe’s before requesting bids.
Pure Plumbing’s “Standard Package Rheem” is likely the Performance 40-gallon tall 36,000-BTU natural gas tank water heater with a six-year warranty that sells for $519 at Home Depot.
The “Standard Plus+ Rheem” is likely the Performance Plus 40-gallon tall 40,000-BTU water heater that sells for $619 at Home Depot.
The Pure Plumbing quote contained all parts required to pass a City of Las Vegas inspection, and more:
- Expansion tank – Since this home is not equipped with a modern water pressure valve, an expansion tank is necessary. A water heater expansion tank is a safety device used in hot water systems, particularly those with closed-loop systems. It’s essentially a small, pressure-resistant tank that helps prevent water heater and plumbing system damage caused by pressure fluctuations. An EASTMAN 2-gallon expansion tank costs $41.98 at Lowe’s
- Sediment Trap – An Everbilt Sediment Filter costs $43.98 at Home Depot.
- Stainless-steel supply lines – An EASTMAN Stainless Steel Installation Kit for gas water heaters costs $40.98 at Lowe’s.
- Earthquake straps – A HoldRite QuickStrap Steel Strap Kit for an up to 80-gallon gas tank water heater costs $26.98 at Lowe’s.
- Gas flex supply line – Not included in the quote but probably necessary: EASTMAN 24-in 1/2-in MIP Inlet x 1/2-in MIP Outlet Stainless Steel Gas Connector, which costs $24.93 at Lowe’s.
- Drip pan – An EASTMAN 22-inch Aluminum Water Heater Drain Pan with PVC coating costs $18.98 at Lowe’s.
- Ball valve – An EASTMAN 3/4-inch Compression Brass Ball Balve costs $14.83 at Lowe’s.
The total cost of the Rheem Performance 40-gallon water heater and required parts is $688. The remaining portion of the bid, $2,302, is for labor and profit.
Unfortunately, both Pure Plumbing and Uncle E failed to mention that the leak had caused water damage. We found that out from our Choice Home Warranty company plumber.
Choice Home Warranty
We are not fans of home warranty companies. Here’s why they are not well-regarded:
- Low visibility contractors – Home warranty companies typically employ contractors who only do warranty work, which means you have far less visibility into the workings of their contractors. In our “Buying and Replacing an HVAC” post, they used a contractor that could not even be found googling.
- Foot dragging – Home warranty companies like Choice practice a tried-and-true strategy: try to drag out the process so that the homeowner, usually in dire straits, will cave in and take care of the problem themselves.
- Claim rejection – Not surprisingly, Choice rejected our claim saying, “Under normal wear and tear conditions, this failure takes time to occur and cannot develop within the commencement of the policy.” However, a thorough home inspection report conducted one year before the policy became effective found no such leak. In addition, the policy was in effect for two years before the leak, so long enough for the leak to develop within the policy period. The comments on the FTC website article “ So what’s the deal with ‘home warranties’?” are illuminating:
“I have not been reimbursed for a new hot water heater and an air conditioner repair on two occasions. I was informed by Select Home Warranty they do not cover leaks in hot water heaters.”— Frank P. Bern…
24-Feb-23
“The home warranty companies make money by not paying claims. That is really all you have to know about them. I tried three of them when I first moved to Nevada. They use poor quality contractors, pay them as little as possible (which tells you why they don’t have good contractors) and deny as many claims as they can. You can take them to court or let it go. I left them before a really large claim was presented by I know they would deny it.”— BrkrDave
24-Feb-23
- Up-front estimate payment – Because they reject so many estimates, the contractors they hire have to make money somehow, which is why Choice Home Warranty charges $75 for a claim evaluation upfront. It’s a racket that pleases all involved.
Choice Home Warranty’s plumber in Las Vegas is OSP Plumbing & Rooter. Their representative used a moisture meter to obtain a 99.9% reading of the wall beneath and below the water heater. That was too much moisture.
A moisture meter, like the ennoLogic eH710T, which sells for $40, provides moisture readings of a wide range of materials.
Of course, it’s debatable whether any wall will not instantly dry out in Las Vegas’ intense heat and low humidity. It should also be noted that the OSP plumber immediately recommended a company they closely worked with, Pro Restoration. However, Pro Restoration only works with insurance companies; since we were self-pay, that scheme has backfired.
However, as the OSP plumber remarked, a complete water heater installation can weigh up to 500 pounds, so you must ensure that the platform on which it sits has not been weakened due to water rot. Also, you want to avoid any mold from growing inside your home. So, the next phase of this water heater misadventure was getting a water restoration company to submit a bid, whether necessary or not.
Water Restoration
We again used Yelp water restoration company recommendations and requested bids from one top-rated company. As Yelp is wont to do, it submitted our bid request to at least five other companies, which resulted in an avalanche of phone calls and text messages.
The first company to provide an estimate was Life Savers Restoration, which submitted a $1,400 bid for water mitigation. A second company, Absolute Flood Response, provided an estimate of $6,800.
Suffice it to say, we went with Life Savers, which showed up the next day. The company removed the old water heater and opened the wall to deploy an air dryer.
Drywall Repair
A contractor called Rex Construction charged $1,200 to repair and paint the drywall.
City Permits
We ended up choosing Uncle E’s $1,000 installation bid. If we had selected the cheapest option, we would have had to apply for a permit ourselves. A “fast-track” permit for replacing a water heater with no plans costs $77.
Summary
According to Angi’s List, the average cost to install a new water heater is about $1,300. However, depending on the kind of water heater, the unit size, and the professional chosen to complete the work, you can expect to pay between $875 and $1,750. The national average cost to repair a water heater is $600, with repairs ranging between $90 and $1,730.
Unfortunately, repairing a leaking water heater was not an option. So, installing a new water heater cost us $4,249.17, which was not much above some of the initial plumbing-only estimates without restoration:
Water Heater Replacement Cost
Source: 24-Aug-24 Ubertrends LLC
It pays to shop around. 🧐
