Water and Electricity Don't Mix

In the aftermath of water damage, whether it be a flood or a busted water pipe, it is necessary to understand the potential hazard that exists. First, water can be an unintentional conductor of electricity, so whenever water comes in contact with electrical components, a potential hazard exists. After a flood or pipe burst, water remaining in the buildings, machinery, switches, and other components of an electrical system poses a serious threat to life and to the proper operation of the system. Since even a small, undetected amount of moisture can be harmful, things that appear to be dried out can still be a potential hazard.  Second, Water causes rusting, or corrosion, especially among products that were never designed to be subjected to water. This rusting, which may be hidden from sight or take time to develop, can interfere with the proper operation of electrical components. For example, the mechanism of a breaker has internal workings made of metal, and these internal components could rust or corrode unseen inside the breaker and damage it to a point that it is inoperable. Often during or after even a heavy rain, your panel may become subject to water damage, and homeowners might experience seeing water leaking from the panel itself. This situation poses a problem.
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