Overheating Issue

[kalignos]

My old water heater was over 10 years old. It started overheating and when I checked the thermostats, there were signs of leaking at the lower one. I decided with the age to just replace it. Brand new water heater is overheating, lower element has scorch marks in the insulation and smells hot. Checked electric with a voltmeter and power coming through is correct. Did I just manage to get a bad out-of-the box heater or should I look deeper for another problem?

 

[hj]

sounds like a loose wire at the thermostat or element.

 

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[Master Plumber Mark]

What Quality brand of water heater did you install... A Whirlpool perhaps??