Water Heater Non-Covered Charges (NCC's)
Purpose
Initial Inquiry
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Common Customer Statement
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“I
received an email saying that my replacement was approved, but there would be
additional charges that I would be responsible for paying. Can you explain this
to me. I thought the warranty covered everything.”
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Relevant Response
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“I do see we have approved the replacement of your water heater. While the warranty does cover the water heater itself, including parts or equipment needed for the repair or replacement, along with standard labor to install it, work such as modifications and permits is considered additional installation-related work and not covered under the warranty. Those costs are determined by your state and/or the service provider. We encourage you to reach out to them for an explanation of the costs."
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Plumbing and Water Line Modifications
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Description |
A new water heater may require changes to the water line connections so the new unit can be installed safely and correctly. Even if the old water heater was working with the existing plumbing setup, the new equipment may require changes based on size, location, or current installation standards.
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Explanation |
Sometimes plumbing charges can come up during a replacement because the home warranty covers the failed item, but not every cost tied to installing the new equipment. For example, the new water heater may require water line updates or plumbing changes so it can be connected safely and installed properly. The good news is the warranty still covers a large part of the replacement expense, which can help save you quite a bit compared to paying the full cost on your own. |
A Gas Line and Venting Changes
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Description |
If the home has a gas water heater, the provider may need to modify the gas line or venting system to complete the installation safely and correctly. The existing gas or vent setup cannot always be reused just because it is already there.
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Explanation |
In some cases, when a water heater is replaced, gas or venting modifications may be required to accommodate the new equipment and meet current installation or safety requirements. This type of work is not addressed under the home warranty, as it depends on the home’s existing setup and what is needed to complete the installation properly. The warranty covers the water heater itself, including the necessary parts or equipment, as well as standard labor required for the repair or replacement. Any additional work, such as gas line modifications or venting updates, is not covered under the warranty and would be an out-of-pocket expense. The service provider would be paid directly for this additional work, |
Drain Pan and Drain Line Additions
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Description |
The provider may be required to add or modify a drain pan or drain line to help protect the home from water damage. This is especially common when the water heater is located in an attic, garage, closet, or other interior area where a leak could damage surrounding property. A new installation may require additional drainage protection even if the old unit did not have it
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Explanation |
Your home warranty covers the failed covered item and standard labor when there is a mechanical failure due to normal wear and tear. Because these items are related to installation requirements and home protection, rather than the covered mechanical failure itself, they are not covered under the home warranty. |
Platform, Stand, or Support Modifications
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Description |
The provider may need to update the area where the water heater sits so the new unit can be installed safely and correctly. This can include replacing or building a stand, platform, or support base, leveling the unit, or making adjustments to the surrounding space. This is more common when the new unit is a different size or when code requires the unit to be elevated or better supported.
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Explanation |
Sometimes, when equipment is being replaced, the area supporting that equipment also needs to be updated so the new system can be installed safely and correctly. Your home warranty covers the failed-covered equipment and standard labor for the repair or replacement. However, items such as stands, platforms, supports, or other structural adjustments are considered installation-related or code-related updates, so they are not covered under the warranty. |
Expansion Tank and Pressure Related Updates
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Description |
A new water heater installation may require pressure-related safety items to be added or replaced. This can include an expansion tank or other components needed to help the system operate safely and protect the plumbing system. These items may not have been required when the old unit was installed but may now be needed for the new installation.
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Explanation |
Sometimes, when a repair or replacement is completed, additional updates are needed to support the new installation and meet current safety requirements. Your home warranty covers the failed-covered equipment and standard labor for the repair or replacement. However, any additional work or materials needed for pressure control or safety updates are not covered under the warranty and would be an out-of-pocket expense. |
Electrical Modifications and Code Upgrades
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Description |
An electric water heater or tankless unit may require electrical parts to be updated or upgraded. This can include wiring changes, breaker updates, disconnects, or electrical modifications needed to support the new equipment safely and correctly. Even if the old water heater was running, the new equipment may have different electrical requirements.
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Explanation |
Sometimes electrical charges can come up during a replacement because the home warranty covers the failed item, but not every cost tied to installing the new equipment. For example, the new water heater may require electrical updates to support a safe and proper installation. Those costs are considered installation-related rather than part of the covered failure itself. The good news is the warranty still covers a large part of the replacement expense, which can help save you quite a bit compared to paying the full cost on your own. |
Code Upgrades
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Description |
The service provider may be required to make updates to bring the installation up to current code or safety requirements. These are items that may not have been required when the original water heater was installed but are now needed for the new installation to be completed properly and meet local requirements.
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Explanation |
Sometimes, when a repair or replacement is completed, additional updates are needed to meet current building, safety, or installation code requirements. These updates can vary based on local regulations and the specific setup of the home. Your home warranty covers the failed-covered equipment and standard labor for the repair or replacement. However, any additional work or materials needed to meet current code requirements are not covered under the warranty and would be an out-of-pocket expense. |
Permit Fees
Description | Some water heater replacements may need a permit from the city or county before the work can be done. Permit fees are charges set by the local area and are usually not part of the actual equipment or labor cost. These fees help cover the review and inspection of the installation to make sure the new water heater meets local code requirements. The amount can vary depending on where the home is located, and in some cases, an inspection may be required after the installation is finished. |
Explanation | Sometimes, when a major repair or replacement is completed, a permit may be required by the city, county, or local municipality before the work can be performed. Permit requirements can vary based on where the home is located and the type of work being done. Your home warranty covers the failed-covered equipment and standard labor for the repair or replacement. However, permit fees are considered a local requirement tied to completing the installation, so they are not covered under the warranty and would be an out-of-pocket expense. |
Disposal/Haul Away
Description | The provider may also need to remove the old water heater and handle the disposal of materials from the repair or replacement. Old equipment and debris may need to be hauled away and disposed of according to local requirements.
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| Sometimes, when equipment is replaced, the old unit or materials must be removed and properly disposed of. Disposal requirements can vary depending on the type of equipment being removed and local handling requirements. Your home warranty covers the failed-covered equipment and standard labor for the repair or replacement. However, disposal or haul-away charges related to removing old equipment or materials are not covered under the warranty and would be an out-of-pocket expense. |
T&P Discharge Line Modifications
Description | The temperature and pressure relief valve discharge line may need to be added, replaced, extended, or corrected so the water heater can be installed safely and meet code requirements.
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| Sometimes, when a water heater is replaced, the discharge piping for the safety valve must also be updated to meet current safety standards. Because this is part of the installation and code compliance, rather than the covered mechanical failure itself, it is not covered under the home warranty. |
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