re: Water Heater Drain Code

I'd be concerned too. But your setup isn't that uncommon....neither is a shitload of water damage due to a WH issue. T&P valves fail often enough. I'd aleast put a water alarm in the pan so hopefully someone can hear it before it overflows. Be great if it was a alarm linked to wifi or security system. Usually they start as a drip when failing. Leaking tanks aren't unheard of either so the T&P valve isn't the only concern.

WHs in areas where they can cause a lot of damage if they start leaking are ticking time bomb imo.