Choosing a Water Heater

These days homeowners have a lot of options when choosing a new water heater.  Before choosing a new water heater, you should consider the different types of water heaters available and choose a type and size that is right for your home.  Keep in mind that if you choose a qualifying energy efficient water heater, you may be eligible for a tax credit of 10% of the cost of the water heater up to $300.

There are several different types of water heaters on the market today.  A conventional storage type water heater is a popular option.  These keep 20 to 60 gallons of water hot and ready to use at all times.  These are less efficient than other types of water heaters because they keep water hot even when you are not using it.

Tankless or on-demand water heaters heat water as it is needed instead of storing it.  Since they do not have the energy loss associated with storing hot water, they are more efficient than conventional water heaters and can save money on your energy bill.  One concern with tankless water heaters is that they may not be able to keep up with the demand if multiple demands for hot water are made at the same time such as washing clothes and taking a shower.

Heat pump water heaters use electricity to move heat from the air or ground to heat water instead of heating the water directly with a flame or heating element.  These are the most efficient type off water heaters, but also the most expensive.  Also, they are slower to heat water than conventional water heaters.

2011 Water Heater Tax Credit

If you are in the market for a new water heater, you should consider installing an energy efficient water heater to take advantage of the energy efficiency tax credit.  The credit for 2011 is not as good as last year, but it’s still a good incentive and the savings from an energy efficient water heater will continue for years.

If you installed your water heater in 2010, the tax credit is much more generous.  For qualifying energy efficient water heaters, consumers were eligible for a tax credit equal to 30% of the cost of the water heater up to $1,500.  This tax credit was set to expire at the end of 2010

Congress extended the tax credit to cover qualifying energy efficient water heaters installed in 2011, but the available tax credit has been reduced.  This year, a consumer is eligible for a credit equal to 10% of the cost of the water heater and the total credit for the water heater is limited to a maximum of $300.

This tax credit includes qualifying standard gas, propane, and oil water heaters, electric heat pump water heaters, and tankless on-demand water heaters.  The tax credit is a dollar for dollar reduction in your federal tax liablility for 2011.

The credit is also available for other energy efficient products such as roofing and HVAC equipment with a total limit of $500 for all energy efficient equipment installed in 2011.

Although the tax credit is not as much this year, it’s still a great deal.  Water heating can account for up to 25% of a home’s energy usage.  Saving 10% on an energy efficient water heater not only saves you money today, but it will help you save money on your energy bill for year after year.

Comparing Plumbing Estimates

Any time you have big plumbing job like replacing a water service line or a full kitchen or bathroom remodeling, it’s a good idea to get at least two or three estimates before choosing a plumber to do the work.  Not only will the estimates give you a better idea of a reasonable price for the work, but you will have the opportunity to meet and evaluate the plumbing company before hiring them.

When comparing estimates, you need to make sure that you are comparing estimates for similar work.  For example, the estimate should specify the cost of materials and the reality is that material costs are pretty much the same for almost every plumber.  If one estimate has a much lower materials cost, you need to dig a little deeper to make sure that the estimate is based on the same quality of materials.  PVC pipe is much less expensive than copper pipe so make sure that you are comparing cost estimates for the same type and quality of materials.

Labor costs may vary depending on the skill of the plumber, but a significant difference in labor costs is reason to be concerned.  Make certain that the labor costs are for the same amount of work to be performed by an experienced plumber.  Unskilled labor is less expensive, but you don’t want the plumber to be learning the trade by working on your home.

Finally, be sure that the estimates cover the entire job.  If there is digging involved, be sure that the cost of the digging equipment is covered.  Check to ensure that the costs of any necessary permits are included as well as clean up and disposal of any debris.

By doing your homework up front, you will help avoid any unpleasant surprises down the road.

Is Your Plumber Insured?

Whenever you need to find a good, reputable plumber to handle a plumbing issue at your home, you should always make sure that the plumber has adequate liability and workers compensation insurance.   Whether your plumbing problem is a small job like a clogged toilet or faucet replacement, or a big job such as a complete residential repiping or water service line repair, there is always the potential for something to go wrong and if your plumber is not insured, you could wind up on the hook for the damages.

A reputable plumber will have both workers compensation insurance and liability insurance.  If a worker is injured while working at your home, the workers compensation insurance will cover it.  If there is an accident that causes any damage to your property or your neighbor’s property, then the plumber’s liability insurance will kick in.

You may think that insurance is not really necessary because how much damage can a bad plumbing job do.  You would be surprised.  Suppose your plumber is installing a new water service line and accidently cuts through the electrical wires serving your neighborhood.  Or suppose a leak in your new water service line goes unnoticed until it erodes the neighbor’s foundation.

Both of these scenarios seem unlikely, but they have happened before and if it happened to you, you would be liable unless your plumber has the appropriate insurance.  Your homeowners insurance policy might cover some of the damages, but you would have to pay the deductible and deal with the hassle of the claim filing process.

Don’t take unnecessary risks.  Make sure your plumber has adequate insurance before they start work and avoid any liability issues that might arise.