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I agree 100%. What I always say, if there is a potential danger involved, it's best to just get permitted. And I always consider doing any work near wiring, plumbing or any work to the property, to require a permit. A lot can go wrong, and I'd rather have all my permits in order than face trouble for not.The rule of thumb here is if it has hard wiring, plumbing (especially gas), mechanical or structural a permit is required. Water heaters take electrical, plumbing and sometimes gas.
That being said, many people do not get permits for water heaters, plumbing, and minor electrical work in their homes, so if you move into a home keep that in mind and make sure that all of the work was done correctly. And remember that insurance sometimes does not cover unpermitted work.
The rule of thumb here is if it has hard wiring, plumbing (especially gas), mechanical or structural a permit is required.