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Quick, low-risk steps

  1. Record your current water heater's model, fuel type, age, and visible leak location.
  2. List your household's simultaneous hot-water needs before sizing new equipment.
  3. Ask for a written quote that itemizes all scope items listed below.
  4. Compare permits, venting, drain, electrical or gas work, and disposal across bids.
  5. Confirm that the installer will handle commissioning and warranty registration.

Equipment and Capacity

The quote should specify the water heater type (tank, tankless, or heat pump), brand, model, and capacity. Capacity is not just tank size; it must match your household's peak hot-water demand. A professional can perform a sizing calculation based on the number of fixtures and simultaneous uses.

Heat pump water heaters have specific installation requirements, such as adequate air volume and condensate drainage. The ENERGY STAR program notes that site conditions and current utility rates affect the benefits of any high-efficiency model.

  • Confirm the first-hour rating or flow rate meets your needs.
  • Ask if the unit qualifies for local rebates or federal tax credits.
  • Check that the warranty period is clearly stated.

Fuel, Venting, and Connections

The installation scope must address the fuel source: natural gas, propane, or electric. For gas units, this includes gas line sizing, shutoff valves, and combustion air. For electric, it covers circuit amperage, disconnect, and wiring. Any change in fuel type may require significant upgrades.

Venting is critical for gas and some heat pump models. The quote should detail vent material, routing, and termination. Condensate management is often overlooked; a neutralizer or pump may be needed. Improper venting can lead to carbon monoxide hazards.

  • Verify that the gas line or electrical circuit is adequate for the new unit.
  • Ask if a new vent or chimney liner is required.
  • Ensure condensate drainage complies with local code.

Permits, Inspections, and Code Compliance

Most jurisdictions require a permit for water heater replacement. The installer should pull the permit and schedule the inspection. This ensures the work meets safety and building codes. Without a permit, you may face issues when selling your home or filing an insurance claim.

Code requirements vary by location. In Denver, specific rules may apply to expansion tanks, seismic strapping, and pan drains. A licensed plumber will know the current local amendments. Always confirm that the quote includes permit fees and inspection coordination.

  • Ask who is responsible for obtaining the permit.
  • Confirm that the final inspection is included in the price.
  • Check if your municipality requires an expansion tank.

Removal, Disposal, and Cleanup

The old water heater must be properly disconnected, drained, and removed. Disposal fees may apply, especially for units containing hazardous materials. The quote should state who handles disposal and whether recycling is available.

Cleanup includes removing debris, old piping, and packaging. Some contractors charge extra for haul-away. Clarify if the work area will be left broom-clean. Also, ask about patching any wall or ceiling openings made during the install.

  • Confirm that disposal of the old unit is included.
  • Ask if there are additional fees for stairs or tight access.
  • Ensure the installer will test the new unit and explain its operation.

Take this with you

Evidence and scope checklist

  • Equipment brand, model, and capacity
  • Fuel type and connection requirements
  • Removal and disposal of old unit
  • Permit and inspection fees
  • Gas line or electrical circuit upgrades
  • Venting or condensate management
  • Pan drain and shutoff valves
  • Expansion tank if required
  • System commissioning and testing
  • Labor and warranty terms
Open the interactive private worksheet →

Common questions

What homeowners ask next

Why do I need a permit for a water heater replacement?

A permit ensures the installation meets safety codes and allows an inspector to verify the work. It protects you from hazards like gas leaks or improper venting. Most jurisdictions require one, and skipping it can cause problems when selling your home.

What is an expansion tank, and do I need one?

An expansion tank absorbs pressure increases in a closed plumbing system. Many codes require one when a backflow preventer or pressure-reducing valve is installed. Your plumber can determine if your system needs one.

How do I compare installation quotes?

Use this checklist to ensure each quote covers the same scope. Look for line items like permits, disposal, and warranty. A lower price may omit essential work. Ask questions about anything unclear.

Evidence

Sources used for this guide

Research checked July 31, 2026

Optional next step

Need an on-site professional?

Use the guide and worksheet first so you can describe the situation and compare the full scope. A referral is optional; you can also contact a licensed local provider directly.

Referral matching is not enabled yet.

We have not enabled a provider route for this site. Use the checklist to contact and verify local providers yourself; urgent hazards should go to the appropriate emergency or public service.