January 15, 2026 – A recent incident report details a homeowner’s alarming experience with a Rinnai Model V65i tankless water heater, which reportedly emitted heavy smoke and a strong burning smell in their garage, leading to concerns about fire and potential gas explosion. The incident, which occurred while multiple family members and friends were present, raised significant safety questions regarding the product’s internal components.
Product Details
Incident Overview
On December 15, 2025, a homeowner returned to their residence to find their garage filled with heavy smoke and a strong burning odor. At the time, five friends and family members were inside the house engaging in morning routines, including showering. The source of the smoke and smell was quickly identified as a Rinnai tankless water heater, with the drywall around its air vent reportedly blackened. The homeowner expressed serious concern that the proximity of a gas line to the unit meant that a delayed discovery could have resulted in a major fire or gas explosion, endangering lives and potentially destroying their home.
Following the incident, the homeowner attempted to contact Rinnai America Corporation directly but was informed that the company only communicates with licensed contractors regarding such issues. Rinnai reportedly requested that the homeowner hire a licensed electrician to perform specific tests to determine if external electrical wiring was the cause. The homeowner hired a new, licensed electrical company, which, after conducting live testing in consultation with Rinnai’s technical department, concluded that the fire was caused by an internal circuit board within the Rinnai unit, not by external faulty wiring.
The homeowner also reported difficulties and perceived price gouging from various plumbing companies in the Las Vegas area when seeking quotes for replacement and installation, with one company initially quoting $2,850 and another $4,500 for a product less than $2,000. Rinnai reportedly revoked an initial conditional approval for a free replacement before ultimately approving a free replacement unit after the homeowner incurred $100 for the electrician’s services and $1,300 for a new plumbing company’s installation. The new unit has since been installed and is functional. The homeowner expressed deep dissatisfaction with Rinnai’s handling of the incident and raised concerns about the safety of Rinnai products.
Safety Concerns
This incident highlights several critical safety concerns associated with the reported malfunction of the Rinnai tankless water heater:
- Immediate Dangers: The presence of heavy smoke and a strong burning smell indicates an immediate risk of fire. Given the report of blackening around the air vent, there was a clear sign of extreme heat or combustion within or near the unit.
- Fire and Explosion Risk: The homeowner’s concern about a potential gas explosion is significant, especially considering the proximity of a gas line to the water heater. Malfunctions in gas-fired appliances can lead to gas leaks, and an electrical or internal fire can ignite these leaks, causing catastrophic explosions and fires.
- Property Damage: A fire originating from such an appliance can quickly spread, causing extensive damage to the garage, the entire house, and its contents.
- Harm to Occupants: Smoke inhalation is a serious health hazard. A fire or explosion could lead to severe injuries or fatalities for anyone present in the home, particularly given that several individuals were present during the reported incident.
- Product Reliability: If the fire was indeed caused by an internal circuit board defect, as the homeowner’s electrician allegedly concluded, it points to a potential manufacturing or design flaw that could affect other units of the same model, threatening public safety.
What Consumers Should Do
If you own a Rinnai Model V65i tankless water heater or any other tankless water heater, and you experience similar issues:
- Immediate Action: If you detect smoke, a burning smell, or any signs of fire or gas leak from your water heater, immediately evacuate your home and call 911 or your local emergency services (fire department). Do NOT attempt to troubleshoot or extinguish the fire yourself. If it is safe to do so *after* evacuation, you may consider turning off the main gas supply and electrical power to your home.
- Check Your Product: Locate the model number on your Rinnai tankless water heater (e.g., V65i or REU-VC2025FFU-US) to identify if you own the potentially affected product.
- Professional Inspection: If you have concerns about your unit’s performance but do not observe immediate hazards, contact a licensed and qualified technician to inspect your appliance. Ensure they are experienced with tankless water heaters.
- Regular Maintenance: While this incident points to a potential internal defect, regular professional maintenance of gas-fired appliances is crucial to ensure their safe and efficient operation.
- Report Incidents: If you experience a safety incident with a consumer product, report it immediately to the manufacturer and the U.S. Consumer Product Safety Commission (CPSC) at www.cpsc.gov. Detailed reports help authorities track potential hazards and initiate recalls if necessary.
Manufacturer’s Response
Rinnai America Corporation provided a response regarding the incident. According to Rinnai, on December 18, 2025, the homeowner contacted their Customer Care line requesting a refund and replacement unit, stating the unit stopped running on December 14. Rinnai advised the homeowner against attempting to replace the unit themselves and to instead contact a licensed professional for proper troubleshooting and diagnosis.
On December 19, 2025, the homeowner called Rinnai’s Customer Care line again, this time with a licensed professional electrician. Rinnai’s service notes indicate that the electrician determined the issue was “electrical in nature.” However, Rinnai explicitly states that their service notes “do not indicate that the electrician concluded the fire was caused by the water heater or the heater’s internal circuit board.” At this point, Rinnai’s Customer Care team authorized a goodwill unit replacement.
Legal Help Available
If you or a loved one has been injured by a defective product or suffered property damage due to a product malfunction, you may be entitled to compensation. The experienced product liability attorneys at Farzan Law understand the complexities of defective product cases and can help you navigate the legal process.
Contact us today for a free consultation: 424-325-3112
Our legal team has successfully represented clients in product liability cases involving defective appliances, automotive defects, medical devices, and consumer products. We work on a contingency fee basis, which means you don’t pay unless we win your case.
Note: This information is based on incident reports provided by the U.S. Consumer Product Safety Commission. If you find information that is incorrect, please contact us immediately so we can correct the post to reflect accurate information.
Disclaimer: The information provided in this post is not intended to be legal or medical advice. This article is based on publicly available incident reports. The incidents mentioned have not necessarily been independently verified or adjudicated.