Well, I've never worked with a leak sensor, but to me that looks like normal operation, unless you are saying that there are events occurring on the sensor that aren't showing up there. Altsteon doesn't actually do anything with the data it receives- it's just a bridge from insteon to vera. If you want alerts, you still have to set up the vera interface to generate the appropriate alerts in response to the events you are interested in.
That said, while the support in altsteon for insteon devices blows away the built-in vera support, it still isn't perfect. It is possible that the functionality you want simply doesn't exist on the vera. Hopefully not, but possible.
On a different note, I noticed that you used the -t 2 switch. Given that the default value is 10 minutes, it seems to me that putting that down at 2 seconds would be excessive, probably resulting in a high load on your vera, not to mention the insteon network. In fact, I've never found a reason to change that value - when the devices are properly linked to the PLM (insteon linking, not altsteon), the devices generally notify the PLM, and thus altsteon/vera when something happens, with no need of polling. On the devices I have where this is not the case (such as when a fanlinc state is changed via another insteon device), i've simply set up a vera scene to trigger a poll of the fanlinc when the other devices does its thing. All that, however, is simply my opinion, and you are, of course, free to set up your system however works best for you