Mini Guide: Water Heater Warranty Replacement 101

• "Too many issues": If a customer has had multiple water heater warranty replacements and/or multiple issues with a single model after upgrading, they often opt to request a warranty replacement and will downgrade to the "regular grade" version of the water heater because they did not have issues with that type of unit. We have seen this occur most commonly with tankless water heaters, hybrid heat pump water heaters, and super high efficiency water heaters.

• Special Order Water Heater Replacements: Some water heater models are considered special order and are not stocked at hardware stores nor plumbing suppliers, which may take a few days or a few weeks to be ordered from the manufacturer. This issue is more common for customers with certain water heaters for manufactured housing (used in mobile homes and trailers), direct vent water heaters, super high efficiency water heaters, and some power vent water heater models. In these instances, customers whose original water heaters are inoperable and will take weeks to arrive, often opt to downgrade to a unit that is in stock.

• Manufacturer Recommended Downgrade: Although all the major water heater manufacturers offer free technical and engineering support to help you determine which unit is best for your home, there may be unforeseen or undisclosed details that lead to ineffective installations and premature failure of the water heater. Upon having a technician on site to confirm the unit should be replaced due to a warranty issue, manufacturers may also recommend downgrades after seeing site specifics that, together with a manufacturing issue, led to the unit's failure. We have most commonly seen manufacturer recommendations to downgrade from tankless and hybrid heat pump water heaters in instances where the venting specs differ from the way the units were installed, often when their is insufficient air intake present in a space. The manufacturers handle these situations on a case by case basis, as improper installation settings are not covered under warranty.

• Pro-rated Cost of Replacement Water Heater: Although the water heater tank warranty is meant to cover the cost of the replacement tank, there are times when the cost of said replacement tank has increased. This is common in instances when filing a claim on a water heater that has a 12-year tank warranty or a model that is no longer manufactured. In these instances, the customer is responsible for the price difference between the value of their water heater and the replacement model; price differences can range anywhere from $25 to several hundred dollars, sometimes resulting in customers choosing a cheaper model instead. Below are examples of manufacturer's warranty replacement terms:

• A.O. Smith/Reliance/State Water Heaters: "The Inner Tank – If the inner tank leaks within the warranty period listed on the data plate label after the original installation, Manufacturer will furnish a new water heater of Manufacturer’s then prevailing comparable model. If industry standards, product improvements or product obsolescence prohibit Manufacturer from furnishing an identical model replacement water heater under this warranty, the Owner will be furnished with a new water heater of comparable capacity and functionality; however, the Owner will be charged for the additional value of the item(s) which Manufacturer has incorporated in the replacement water heater."  (Source: State Water Heater Residential Warranty Terms, Point C1)

• Bradford White: "Through our normal supply chain, provide a replacement water heater of our manufacture (or at our option repair the water heater) for any unit which develops a leak in the glass lined tank within the glass lined tank warranty period. To obtain a replacement, the rating plate from the defective unit must be returned, through the supply chain, to BWC. If government regulations require the replacement water heater to have features not found in the defective water heater, you will be required to pay the difference in price represented by those government required features" (Source: Bradford White Limited Residential Water Heater Warranty Terms)

• Rheem/Richmond/Ruud Water Heaters: "If an exact replacement is not available, Rheem will provide you with the current model of your water heater, or component part(s), or a replacement unit with comparable operating features. If government regulations or industry certification or similar standards require the replacement water heater, or replacement component part(s), to have features not found in the defective water heater, or the defective component part(s), you will be charged for the difference in price represented by those required features. If you pay the price difference for those required features and/or to upgrade the size and/or other features available on a replacement new water heater, you will also receive a complete new Limited Warranty (with the full Applicable Warranty Periods) for the replacement new water heater" (Source: Rheem Tankless Gas Water Heater Warranty Terms)

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