Where is the best place is to install/set the water sensors and how do they work?

The best place to locate a water sensor is usually under the appliance, sink, or water heater that you would like to monitor for leaks.  Place the sensor on a flat surface where any leaking water is likely to pool.  Any system users who have notifications set for Water Sensors will be notified according to their notification preference(s) if the sensor detects water.

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