Project Gallery

Tankless water heaters are one of the newer tools for creating a more energy efficient home. Unlike standard units, which continuously heat and reheat water so that it is always hot, tankless heaters generate water warm instantly with high-powered gas burners or electric coils. Yes, this instant heating requires more power, but because the water does not have to be reheated again and again, like in a standard “tank” model, tankless systems use less energy overall. According to Consumer Reports, which studied these appliances extensively, gas-powered tankless water heaters are approximately 22% more efficient when compared to traditional water heaters. Is there a catch? Yes and no. In the right situation, a tankless water heater is the best option. However, it is a good idea to weigh the pros and cons of these relatively new systems before committing.

We'll walk you through several pros and cons of tankless water heaters, so you can decide if a tankless water heater or a traditional water heater is right for you.

After flushing the cold water from the pipes out of the faucet, tankless water heaters can provide an unending stream of hot water almost instantly. Therefore, on a very basic level, these units can indeed deliver on their promise to supply heating without the inconvenience of bulky storage tanks.

The Consumer Reports survey mentioned above names inconsistent water temperatures as one of the biggest buyer complaints. This issue typically results from the heater’s inability to send enough hot water to multiple outlets simultaneously. Also, tankless heaters do not always turn on if the faucet is slightly open (when shaving or rinsing a toothbrush, for example).

A considerable advantage of tankless units is their longer lifespan. A standard, high-quality water heater will last roughly a decade, whereas tankless models function for twice as long. Opting for the longer-lasting tankless model can save a homeowner from needing a replacement every 10 years.

Their longer lifespan makes tankless units inherently more expensive. The average traditional model costs around $500, while the cheapest tankless options start at $1,000. These specialized models are also more expensive cost more to install, so labor fees must be factored into the overall price tag.

While these systems are more expensive, they are also more efficient. In fact, Consumer Reports indicates that tankless water heaters are 22% more efficient than standard models. The monthly savings might be nominal, but homeowners can expect to save hundreds of dollars annually.

Tankless water heaters supply a steady stream of hot water, but the supply is not unlimited. Standard models heat several gallons of water at once – perfect for a single person taking a shower or washing the dishes. But if an individual is running the dishwasher or washing machine while someone else is taking a shower (or two people are taking showers in two different bathrooms at the same time), a tankless heater is not equipped to keep up. A traditional water heater, which can store between 30 and 80 gallons depending on the model, will not have a problem providing hot water to multiple outlets at the same time.

Tankless water heaters are much smaller than bulky storage models. Installers usually mount them on a wall in an inconspicuous place in the basement. In smaller homes, the space savings is a welcome benefit.

A water softener is usually necessary to ensure a tankless heater operates properly. Obviously, this extra equipment adds to the unit’s initial price tag. A softener will also negate the space-saving benefit, as the bulky softener (in addition to the necessary bags of salt) will take up space beside the wall-mounted heater. In fact, this appliance may actually take up more space than a traditional water heater.

Because they are more efficient, tankless heaters qualify for federal tax credits, which help offset the steep installation cost. As of December 2016, the federal government offered a 10% tax credit on the overall cost of buying and installing a tankless hot water heater. Energy Star-certified traditional storage heaters also qualify for the same 10% tax break.

As mentioned above, tankless water heaters require a non-traditional setup, making installation more expensive. A contractor might even be forced to reroute a gas line or add new venting, adding to the overall cost of the project.

The biggest selling point for tankless heaters is that they eliminate “standby loss.” Traditional units reheat water repeatedly, raising energy costs each time that they do so. Even if no one is home, the water heater is using energy because it is still firing up to reheat the water in its tank.

While month-to-month water heating costs are cheaper with a tankless unit, it could take years to make up for the high initial cost. Over time, a homeowner will likely come out ahead, but according to Consumer Reports, the energy savings for going tankless add up to $75 per year, on average. Therefore, it could take 6 to 12 years (or more) before the month-over-month savings cover the installation costs.

In houses with heavy hot water usage, storage tanks will eventually run out of hot water (for example, if three or four people take showers in a row while the dishwasher is running). A tankless heater ensures that everyone has an equally warm shower – as long as they are taken consecutively, not at the same time – because it does not rely on reserved water to meet demand.

A tankless water heater is not the only way to make a home’s water system more efficient. By merely changing showering habits, a family could lower its water bill significantly. In addition, low-flow plumbing fixtures or a more efficient dishwasher could save as much money as a new water heater when the cost of water plus heating are added together each month.

Tankless water heaters are often powered by natural gas, but electric models are also on the market. Depending on a home’s electrical infrastructure, a non-gas unit may solve the issue of rerouting gas lines or investing in other pricey, labor-intensive alterations.

Tankless water heaters are not the only efficient option; solar water heating is gaining popularity across the nation. Featuring solar collectors and storage tanks, solar water heaters eliminate the need to reroute gas lines or install new electrical fixtures. Solar water heaters can be used in any climate and can even recoup their installation costs more quickly because they do not rely on gas or electricity – only sunshine.

Because of their lengthy lifespan, tankless heaters have longer warranties. Therefore, if anything goes wrong, the homeowner will not have to pay for repairs or foot the bill for a replacement. Warranties can run up to 20 years, which is the average lifespan of a tankless heater.

To keep the warranty valid, owners must perform annual maintenance and, perhaps, run a water softener. Homeowners should also flush out their system annually to prevent mineral build-up in the heater or water line. The cost of performing these tasks could counteract some of the savings produced by the lower energy requirements of a tankless heater.

If you have a smaller home and a modest demand for hot water, a tankless water heater is optimal. These efficient units will eliminate standby loss and will provide enough instant hot water for one, two, or three people to shower, wash clothes, and do dishes.

New Energy Star certified traditional storage water heaters are also on the market. Not only do these units offer monthly savings for a lower initial cost – they also qualify for tax credits. Additionally, homeowners do not have to make significant changes to their gas lines or electrical wiring, as nearly all homes are equipped to accommodate these traditional water heaters.

Those pictures you see after a hurricane – ordinary people out there in waist-high water, rescuing both their neighbors and strangers, coming from other states and other counties – demonstrate yet again not only the resilience of Americans but our decency in reaching out to others without a thought to personal safety.

It also makes us all think: What would I do if such a natural disaster were to strike my home or business? What follows are the resources available. Even if you're not in the hurricane area you may have friends and family who are, so be sure to share this with them.

Start with FEMA

• Federal Emergency Management Agency (FEMA) contact info for assistance — DisasterAssistance.gov allows you to apply for assistance online. When you go to the website, you will see a link for transitional assistance, which lists hotels so you can find a safe place to stay.
• You can also call 800-621-FEMA (3362).  The DisasterAssistance.gov site helps with a link to a US Hospital finder and even temporary lodging . Contact your state's emergency management agency to find out about other resources and to get your county's contacts including Airbnb, through its disaster response program.

Massive property damage translates into tens of thousands of insurance claims. Most homeowners' and renters' insurance policies cover wind damage but not groundwater flooding. The distinction between actual flooding and storm-driven water damage can be subtle but may have important insurance implications.

While FEMA offers grants to victims, it admits that the amount is often much less than what is needed to recover.

The region affected by Harvey is underinsured — only one-sixth of homes in Harris County, Texas, whose county seat is Houston, have active National Flood Insurance policies. There are about 1.8 million housing units altogether.

What about businesses? Small businesses may be eligible for a disaster loan program through the Small Business Administration.

Based on statistics like these, it's expected that a large portion of overall economic damage caused by flooding won't be covered by insurance.

The Next Steps

What to do:

1. Contact your insurance company as soon as possible to report your claim. Insurers visit the most severely damaged areas first, so be prepared to provide an accurate description of any damages.
2. Get a claim number and write it down — it's the quickest and easiest way for insurance companies to locate your file.
3. Ask when you can expect to see a claims adjuster. It can be anywhere from a week to five or six months, depending on the extent of the claim.
4. Document losses with pictures and video. Include a list of damaged personal items. Try to include the date of purchase and approximate value of any damaged items, and collect receipts. Put all of this into the cloud so it can be accessed anywhere.
5. Keep good records of anything you spend to make immediate repairs to secure your home — don't forget receipts from hotels and meals if you couldn't return to your home right away.
6. Sign up for text alerts that notify you of the status of your claim.

Other important tips:

• If you have flood insurance, notify your provider within 60 days of damage. The National Flood Insurance Program has a step-by-step guide on how to file your flood claim.
• Only cover broken windows or holes to keep rain out and prevent theft — don't make permanent repairs until instructed to by your insurance company. Save all receipts.

Expect a check within five business days after your insurance company agrees to pay your claim.

Also notify your mortgage company and auto loan lender — monthly payments may be deferred for a period of time and late fees typically are waived because you're living in an area impacted by a natural disaster.

Your area may lack power not only for days but for weeks. You may have to purchase food, medical supplies and other necessities using cash instead of credit or debit cards. Areas without power revert to a cash-only economy. Many banks and credit unions will set up mobile branches open beyond typical banker's hours so that affected consumers can access cash or easily apply for loans needed to repair damage.

Notify your utility and cable companies so bills will be halted. You may even want to notify the three credit bureaus and the Federal Trade Commission to have a fraud alert placed on your accounts to lower the chance of becoming a victim of identity theft. Creditors often are willing to negotiate a payment plan and review your budget.

Moving Forward With Insurance

Once you get your immediate issues taken care of, you will probably have a lot of back-and-forth with the insurance company over the coming weeks and months. Here is what you can expect:

Unfortunately, even with the combination of FEMA, homeowners and flood coverage, not all repair costs will be paid — there will be gaps when trying to make your home the way it was before the hurricane hit. Damage caused by even a few inches of water in a 1,000-square-foot home can easily cost more than $10,000 to repair.

Insurance companies typically provide additional living expenses for hotels and meals if you can't live in your house or conduct business while repairs are being made. You should expect to shell out your own money first, but you'll be reimbursed for expenses within 30 days. Companies will reimburse for sump pumps, generators or supplies like wood for do-it-yourself repairs. Filing claims as soon as you can is smart just to get your name on the list. It will help you get the most from your benefits. Find out what your policy provides beyond the immediate benefits.

With some companies, you may have to do some negotiating with your adjuster about the extent of damage to some possessions. Realize, too, that the insurance company's estimate of how much it will cost to repair your home and your own contractor's figures may not be anywhere near comparable. Either a compromise can be hammered out or you can get a mediator to break the impasse, but that process can lengthen and complicate the rebuilding process.

Advice? Start by trusting the company, but do so warily and professionally. Keep notes of conversations and copies of correspondence and receipts. If you run into trouble with the claims department, see if there is a complaint resolution department.

Details on Tax Help

The IRS has announced that it's providing help to victims of Hurricanes Harvey and Irma. Here are some specifics:

• The agency is waiving the diesel fuel penalty for all of Texas in the aftermath of the hurricane. Penalty relief is provided for partnerships that filed late returns. The IRS has even offered extension filers until January 31 to file.
• If you have a business in one of the counties that were hit hard, you may qualify for tax relief, including abatements. Quarterly estimated tax payments, as well as quarterly payroll and excise tax deposits, will be abated as long as the deposits were made by September 7. If you receive a late filing or late payment penalty notice anyway, call the IRS to have the penalty abated.
• Know that the IRS is automatically identifying taxpayers in covered disaster areas and applying automatic filing and payment relief. But if you have a business outside the covered disaster area that was nevertheless affected, you may still be eligible for relief. Call the IRS disaster hotline at 866-562-5227 to request tax relief.
• And what about claiming disaster-related casualty losses on your federal income tax return? You may deduct personal property losses not covered by insurance or other reimbursements. Put the disaster designation ''Texas, Hurricane Harvey'' or ''Florida, Hurricane Irma'' on top of your form so the IRS can expedite the processing of your refund.

Other Helpful Resources

Assistance for your business is available through a link, Other Recovery Help, accessed from DisasterAssistance.gov. Here you will find a heading that says Catalog of Federal Domestic Assistance, and if you click on it, it will allow you to search programs by state, local and even tribal entities, as well as profits and nonprofits that offer assistance.

There is a link to a National Resource Network that is composed of a diverse group of private and public sector organizations to help distressed cities and counties find and apply solutions to aid economic recovery and growth:

• Support for implementing solutions.
• Access to peer network and new ideas.
• Online, on-demand access to expertise.

FEMA offers a Community Recovery Management Toolkit that can be used to find local officials and community leaders who will help manage long-term and post-disaster recovery. The toolkit offers guidance, case studies, tools and training. The information is in four sections:

• Organization.
• Recovery Planning.
• Managing Recovery.
• Core Capability-Specific Resources.

The online help offers are many and heartening. They remind us that when overwhelming disaster strikes, we're all in it together, working alongside each other and crossing all regional boundaries. When the worst hits us, ironically, it brings out the best in us.