A plumber will usually check the fuel supply, venting, relief valve, and thermostat or burner, then look at the age and condition of the tank. In Hanover, expect questions about sediment, since minerals from the town's groundwater can build up in older tanks.
Replacement generally calls for a permit. Hanover's Building and Inspectional Services handles plumbing permits through its OpenGov portal, and its plumbing and gas inspector checks the installation. Propane units also involve the fire department's FP 06 form.
When replacement makes sense, the plumber should go over tank, tankless, and heat pump options, how much hot water your household uses, and where the new unit can sit. Census estimates put Hanover at 2.94 people per household, a starting point for sizing that you can adjust for your own family.