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The presence of rust on the outer metal jacket of a hot water heater, particularly a gas hot water heater, is not necessarily an indication of a leak. Rather, rust is frequently the consequence of condensation which occurs from the combustion of gas. Water vapor is one of the chief by-products of this heat process and a thorough check of the venting is thus essential. Condensation is generally greatest during the winter and early spring months when incoming water temperatures are at their lowest. Did you know that inlet water temperature can vary as much as 30° F between seasons.
Quick condemnation of a hot water heater that displays a rusty top or rusted bottom shroud will often prompt unnecessary replacement of an otherwise serviceable unit.
Since this issue has always concerned many, I have been soliciting the opinions of other professionals for some time. Many gas-fired water heaters are returned as leakers when the heater was not leaking but rather condensation had formed and fooled not only the inspector, but the plumber and property owner as well.
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Information contained in a publication by State Water Heaters reminds us that "excessive condensation can also cause pilot outage due to water running down the flue tube onto the main burner and putting out the pilot flame." It will also cause premature corrosion of the tank itself, but again, not necessarily the visible outer components.
So before you contemplate replacement, check it one time and make sure it's not condensation you're experiencing.
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