Yes I seem them mostly. I’m doing mostly late 1800s and early 1900s construction in Minnesota.
Mostly in Minneapolis, which has undergone some “energy improvement” suggestions/requirements which may be part of it. You cover an old home in foam and vinyl and no makeup air, it happens. At least in our neck of the woods.
You must secretly work for “Big Screwdriver and Flashlight”, If I did that, their sales numbers would sky rocket. 
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So which is it?
Sorry for your abrupt entry into preforming home inspections, Jonathan.
Where was the water heater located?
Flooding covers a large category.
Where was the floor drain? Was it covered or obstructed? Was the floor drain at the lowest location in the basement?
For now say nothing but inform your insurance provider.
Water heaters require a safety pan plumbed to a floor drain or DWV at the receptor over a living space or a finished area, to prevent flooding.
That is a regional requirement. For instance, here, there is no requirement for that.
Interesting point about a floor drain, but in the big picture, whether the drain is there or not, whether plugged or not, the OP made a mistake. None of my mistakes have ended this catastrophically but when I bought a furnace in my second year, the quality of my furnace inspections sky-rocketed.
You got me. It is my side business. Buy more screwdrivers and flashlights.
I’ll agree that you are less likely to leave the keys, although I think I have left just about everything else at inspections. I once drove back 60 miles to get my ladder.
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I drove about a two hour round trip to get an old square wooden handled screwdriver. Granted it was probably my grandfather’s and there’s something there, but I’d have done the same for anything. The issue is when I can’t remember where I left things and now I don’t have them any longer.
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I left mine in another state. I was inspecting a small strip center. I carefully planned my inspection to end at the cafe. I placed my ladder outside the cafe’s entrance, had lunch, and drove away. Sadly, the meal was not worth my hundred-dollar ladder.
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I concur, Lon
Unfortunately it does sound like you would be held responsible based on your description. Did you end up having to compensate for damages?
What’s the definition of a normal operating procedure? This is something the new homeowner could do to the water heater under normal operations. Dont see any reason an inspector couldn’t turn the setting up on a water heater for testing. The issue of liability would definitely come up if a child got burned by the hot water. But the malfunction of the appliance happening after not returning it to the original settings is a questionable liability… sops require you to return settings to were they where and document it. That alone causes liability?
What does whatever SoP you refer to say about reporting on a water heater? And returning settings? Please post it so we can answer your question.
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