Maybe. Or maybe liability exists for outside parties in that case: the plumber who was drunk when they put the pipes in, the architect who designed the wall in

Maybe. Or maybe liability exists for outside parties in that case: the plumber who was drunk when they put the pipes in, the architect who designed the wall in such a way to force a ton of joints in one weak spot, the building inspector who signed off on it... heck, maybe the water company is causing a water hammer to form because their pumps are busted. Now if my home owners insurance finds that I flooded the downstairs condo because I fell asleep with the bath running, you bet I’ll pay. But no matter what, either of your examples have a robust regulatory structure around them in terms of licensing and inspections. That is why liability works - without those structures you can’t say “you fucked up, therefore you pay”. I’m all for adding liability into the system but if we do we must do it in a way that spreads the burden to the right places (IoT manufacturers, negligent ISPs) and doesn’t push it straight to the consumer.