A component that nearly every contemporary home has is the water heater, and for good reason. Without this appliance, you would have no hot water for the most basic of household functions: showering, hand-washing, dishwashing, doing laundry, and so on. And while some might think water heaters are not all that modern (after all, they date back at least as far as the 1860s), the truth is that these essential appliances have undergone a whole lot of change in the past century and a half. Indeed, they have changed so much that if you were to plumb (so to speak) the average 1870s water heater for its internal componentry, you would find few (if any) design elements that could be considered "reliable" by modern standards.
A common sign that a water heater is on its last legs is a sharp drop in water temperature that makes it impossible to get a consistent supply of hot water. This problem often results when the tank accumulates sediment that reduces the heater's efficiency and capacity. If you have to crank up the temperature to get the effect you used to get at the normal setting, you might be looking at a tank that has a sediment problem. Also, pay attention to sounds coming from the tank. If you hear hissing or popping, it could mean the sediment is interfering with the heating elements. Lastly, if the water coming out of the heater is rusty or discolored, it's a sure sign that the inner workings of the tank are corroding. All of these symptoms could lead to the more significant problem of the heater failing and not just the annoying issue of not having enough hot water.
Proactively replacing an old or failing water heater can pay off big time in efficiency and safety. Continued use of an inefficient model or one that's on the verge of failure can lead to higher utility bills and possible environmental impact. Today's water heaters, especially tankless models, can be more efficient than anything seen on the market a decade ago. Because today's water heaters have more efficient designs, and because many come with features that make them even safer to operate (no leaking, for instance, or risk of flooding), there's never been a better time to consider making the switch. Recognizing when to switch from the tank to a tankless model is also crucial if not downright inadvisable if your current unit is prone to leaks.