
Looking to replace or upgrade your water heater? Use this water heater replacement cost guide to see what the work will cost and what factors affect your total.
You’re not the only one who needs to be wrapped up when it’s cold out
A water heater insulation blanket is worth it when your unit sits in a cold location like a basement or garage and feels hot to touch.
Water heater blanket costs range from $20 to $40 for materials, so you can add insulation affordably and reduce energy loss from your unit.
You should skip a water heater blanket if you have a gas unit, live in a warm climate, or your warranty prohibits adding external insulation.
Hiring a local water heater repair professional provides clear guidance on whether your unit needs a blanket and ensures safe installation that protects warranty coverage.
If your energy bills are particularly high or your showers are intermittently hot and cold, you may be interested in a water heater blanket. This extra feature offers added insulation to your unit, often lowering what you pay monthly for heating and preserving the integrity of your machine. They can reduce the need for water heater repair costs, too.
Learn when a water heater blanket is really necessary and when you’re better off without it.
A water heater blanket is a protective tarp that wraps around a water heater to better insulate the unit. It’s often made from materials like fiberglass, foil, and denim. A water heater blanket is recommended if your unit has an R-value of 24 or less or is hot to the touch. The blankets' R-values vary, but experts suggest using one with at least an R-value of eight.

There are three reasons you may need a water heater blanket. Some involve lowering energy output and associated savings, and others relate to protecting and providing preventative maintenance on a water heater.
It takes more time and energy to heat up a cold object than it does one that’s already at an average temperature. So, if your water heater is located somewhere drafty or where the temps tend to plummet, like in an attic, basement, garage, or backyard, covering it with an insulating blanket will prevent it from cooling down too much.
When an appliance is under duress for an extended period of time it’s more likely to falter earlier on. Thanks to the fact that water heater blankets provide extra warmth, your tank won’t have to work as hard, which means it may end up lasting a few years longer.
It takes a lot of energy to warm up a water heater, and even more if the heat disperses faster than it accumulates. When the temps are below freezing, units have to exert twice the effort and you end up paying because of it. Adding an insulating blanket to your tank can save between 7% and 16% in water heating costs, according to the U.S. Department of Energy.
While water heater blankets are a boon for those in cold climates, there are a handful of instances in which you’d be better off without one.
Adding a water heater blanket to an old heater that’s on its last leg may temporarily help but shouldn’t be viewed as a permanent solution because it won’t fix the greater issues at play. You’re better off replacing it with a new model and insulating that instead.
If icy conditions are rare where you live or if your water heater is located in a well-insulated area of your home, you can skip a water heater blanket.
The heat from an electric water heater is radiant, which means that it can exit your unit at any point—that’s why it may also be hot to the touch without sufficient thermal insulation. A thermal blanket keeps the heat in these cases, but gas water heaters work a bit differently. Heat loss goes up through the flue in those cases, so wrapping it up won’t do anything except increase your spending.
Although there are few risks associated with a properly installed water heater blanket, make sure such an addition doesn’t go against your warranty or local codes. This happens due to concern over potential hazards, like covering safety warnings, control settings, and temperature and pressure relief valves or air passages. When in doubt, consult your warranty or hire a water heater repair pro near you to find out whether you can use an insulating blanket.
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From average costs to expert advice, get all the answers you need to get your job done.

Looking to replace or upgrade your water heater? Use this water heater replacement cost guide to see what the work will cost and what factors affect your total.

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