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Common Defects - Heating and Water Heater

Here are some common items found on a typical inspection

Flue not sealed
Unsealed flue pipes on furnaces & water heaters.
 
Diverter askew
Water heater diverters askew can allow carbon monoxide into dwelling.
Flue not in Metal Liner
Heating system & water heater flue pipes not in metal liner can allow carbon monoxide into dwelling.
Improper clearance to combustibles
Improper clearance to combustibles in attic is a fire Hazard.
Improper flexible gas line
Improper flexible gas lines can leak and cause fire or explosion. All flexible connectors must be stainless steel and be of approved type.
The one in the photo is plastic-coated brass and is not legal.