As a homeowner, you have a lot of things to think about replacing or repairing. Some of these issues may impact your home insurance while others will just cost money if you don’t get them taken care of. One of these major issues is replacing a hot water heater. A new style is called a tankless water heater. If you’ve never heard of them or thought about getting one, you should know more information to decide whether they will work in your home.

How These Systems Work

A tankless water system doesn’t have a tank (the reason behind the name). Instead of holding water in the tank and keeping it hot, the water will pass over a set of coils which are hot. Those heated coils will heat up the water so that it’s hot by the time it reaches the faucet.
Just like with the traditional hot water tank, the tankless systems come in two types. You can purchase either an electric or gas tankless water heater.

Conserve Energy

One of the benefits of using a tankless water system is because it conserves energy. It takes less energy to heat water as it’s used than to keep it hot until it’s needed. The less water you use in a day, the more money you save.

For example, if you use less than 50 gallons in a day, your savings would be about 50% in energy consumption. For households that use a lot of water, you still save money but not as much.

Length of Life

You usually need to replace traditional water heaters about every 10 to 15 years. A tankless system can last as long as 20 years or even more before you need to replace it.

You won’t have to worry about your tankless water heater leaking, causing water damage all over the floor. Not all home insurance policies include water damage, and many of them are specific about the coverage provided. Water damage can be very expensive, especially if it isn’t recognized right away. Having a tankless system eliminates this concern.

You may find these systems are ideal in vacation homes or guest houses since they aren’t used all the time. If you shut the place up for the winter or at other times, you won’t have a leak to contend with later on.

The Downside of Tankless Water Heaters

While this system has some major advantages, there is one downside. Most of the cheaper systems won’t support hot water running from two locations at the same time. If you’re running the dishwasher, you wouldn’t have hot water for a shower. Of course, this may not be a big deal if you live alone or can schedule your hot water use around this issue.

Consider all the benefits and drawbacks of a tankless water system to determine if it’s right for you. It just might be a good way to save money and conserve energy while reducing the risk of water damage.