Water heaters tend to fail without much warning, and when the tank itself begins to leak, it can release a lot of water into a basement, garage or utility closet. Losing hot water is inconvenient, but the water damage that sometimes comes with a failure can be the bigger expense.

Check your water heater's age, which is often listed on the label, and look for rust, moisture around the base, rumbling sounds, or water that does not get as hot as it used to. Following the manufacturer's maintenance guidance, such as periodically flushing sediment, may help it last longer. Placing a drain pan and a leak sensor beneath the tank adds another layer of protection.

If your water heater is getting older, start researching replacement options before it fails, so you are not forced into a rushed decision. A plumber can help you weigh tank and tankless models and confirm what fits your home. Planning ahead also gives you time to save for the cost.