After speaking with 4 different insurance agents, they all confirmed that if a hot water tank is over 15 years old most insurance companies will require it to be replaced either before they will give you coverage or within a very short timeframe following the purchase of a house. We have had two transactions in the last month where this has been proven true.
This is important to know as you wouldn't want to be a buyer within a few days of possession date trying to get insurance and need to spend $1000 to put in a new hot water tank before they'll give you your letter of coverage.
Or for sellers...if this happens to you and the buyer doesn't have the money for a replacement you could lose the whole transaction.
As a seller you may want to be proactive and replace an old hot water tank before listing.
As a buyer you may want to write in the offer that if the tank is found to be that old you will need a new one installed before possession and negotiate it into the price.
Since it seems that this is the rule rather than the exception it would be much better to be safe than sorry! @TEAMKANDER
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