Water coming out of the top of a water heater typically indicates a serviceable external plumbing connection issue rather than a catastrophic tank failure. Common culprits include loose dielectric nipples, corroded hot outlet or cold inlet pipe fittings, a leaky temperature and pressure (T&P) relief valve discharging water due to thermal expansion or high pressure, or a loose expansion tank connection. These top leaks can usually be repaired easily. Verification: Wipe fittings dry with paper towels and observe connections to confirm the exact leak source.
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