If the products in a chemical equation include h2o, what specific type of reaction is occuring? is a polymer being made or broken down in this equation?

There are two kinds of polymers : addition polymers and condensation polymers

In case of addition polymers, there is simple addition of unsaturated monomeric units. example: polythene

While in case of condensation polymers, the monomers combine with the elimination of a small molecule like H2O, HCl, NH3 etc.

So here as there is formation of H2O as product there is formation of a polymer and that too a condensation polymer

Example: condensation polymer of diamine and dicarboxylic acid to form a polyamide (Nylon-6,6)

condensation

formation of polymer

there are two significant figures.