Insulating hot water heaters

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My electric WH is outside in a small closet. When opened during the Winter, it's warm inside. So I wrapped it in insulation and made a collar on top about 6" deep to insulate the top. No more warm closet in Winter!
 
I've had my gas water heater insulated for years. I noticed soon after insulating it that the water was a lot hotter than before. My house was built in 1992 and I'm still running the original water heater.

Wayne
 
I had a fiberglass blanket on mine for years. Then I put some of that reflective bubble wrap on it and what a difference. I put the fiberglass over the bubble wrap too.

If you put your hand next to the tank it is almost as hot as the water.
 
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