Water Heater Leak: What to Do Right Now

Updated October 21, 2026 · 5 min read

Step one: shut off the water

Follow the cold water line coming into the top of the heater. There is usually a valve on it: a lever handle or a round gate valve. Turn it clockwise or a quarter turn until it stops. That stops new water from filling the tank. If that valve will not budge, or it is leaking itself, shut off the main water valve for the house. In many Colorado Springs homes the main is in the basement or crawlspace where the service line comes through the foundation wall, or in a utility closet near the heater.

Step two: shut off the energy

• Gas heater: turn the control knob to "off" or "pilot." Many units also have a gas shutoff valve on the supply pipe; turn the handle so it sits crosswise to the pipe.
• Electric heater: switch off the breaker labeled for the water heater at your panel. Do not touch the unit if you are standing in water.

If you smell gas at any point, leave the house and call the gas utility's emergency line or 911 from outside.

Step three: find the source

Dry the tank and the floor, then watch for a few minutes. Where the water shows up tells you a lot.

A tank that rusts through from the inside does not get better. Sediment settles on the bottom over the years, and the steel underneath corrodes until it opens up. That kind of failure can start as a slow drip and then let go all at once.

Step four: drain it if the tank is failing

To relieve the load on a failing tank, a plumber will usually drain it, and you can start that yourself if it is safe. Hook a garden hose to the drain valve near the bottom and run it to a floor drain or outside. Open a hot water faucet upstairs so air can get in and the tank drains faster. Be careful: the water inside can still be scalding for hours after you shut the heater off.

Step five: deal with the water on the floor

This is where most of the damage happens. Water heaters sit in basements, utility closets, garages and attics, and each spot fails differently.

• Unfinished basement: water usually runs to the floor drain. Dry the area, check the bottom plates of nearby walls and any boxes stored on the slab.
• Finished basement: water wicks into carpet pad, under laminate and up the bottom of the drywall. In bi-levels and tri-levels common across central and east Colorado Springs, the utility room often sits next to a finished family room, and water crosses under the wall plate into carpet you cannot see from the heater.
• Main floor or closet: water can soak the subfloor and drip into the space below.
• Garage: usually the least damage, unless the water runs under a door into the house.

If water reached carpet or drywall, emergency water extraction and proper drying matter more than speed of cleanup with towels. A local restoration pro will meter the walls and floor, pull up wet pad if needed and set dehumidifiers. For finished lower levels, our basement flooding page explains how that drying works. Colorado Springs' dry air helps, but water trapped under vinyl plank or in a wall cavity still needs equipment to come out.

What drives the cost

No dollar figures here, because the job varies too much. The cost to repair the damage depends on how long the tank leaked before anyone noticed, whether the area was finished, what flooring was down, how far the water traveled, and whether drywall or cabinets need to be cut out. After-hours response and access also play in. The company that inspects writes up the real number before work begins.

Will insurance cover it?

Many homeowners policies treat a sudden tank failure as a covered loss for the water damage, while the heater itself is often seen as wear and tear. A slow leak that went on for weeks may be excluded. Our post on whether homeowners insurance covers water damage in Colorado breaks that down. Take photos of the tank, the label with the model and serial number, and the wet area before anything gets removed.

Before the new heater goes in

• Ask the plumber whether a permit is needed for the replacement. The Pikes Peak Regional Building Department handles plumbing permits in Colorado Springs and most of El Paso County.
• Ask about a drain pan with a line to a drain, especially if the heater sits above a finished room.
• Ask whether your home needs a thermal expansion tank. On a closed system, pressure builds every time the heater runs.
• Consider a leak sensor on the floor beside the new unit. Some can close a valve automatically.
• Flush sediment from the tank on the schedule the manufacturer recommends.

The other leaks that look like a water heater

Sometimes the heater is just sitting next to the real problem. A water softener, a furnace or air conditioner condensate line, a humidifier on the furnace, or a washing machine hose in the same room can all leave water near the heater. Our post on washing machine and dishwasher leaks covers those appliance failures. If you are not sure how long the water has been there, read how long it takes to dry a house in Colorado Springs before you put the furniture back.

Sources and official resources

• Contractor license lookup (Pikes Peak Regional Building Department)
• Homeowners insurance help (Colorado Division of Insurance)
• IICRC: restoration industry standards body
• A Brief Guide to Mold, Moisture and Your Home (EPA)
• Flood insurance basics (FEMA FloodSmart)