Speaking of wrapping the water heater itself I've got a question. I went down (it's in our soon to be finished basement) and touched the outside of my water heater the other day and as best I can tell it is room temperature on the outside. This indicates to me that I shouldn't worry about wrapping it as I am not losing much heat (via conduction) to the room.
Am I thinking correctly on this, or are there significant radiant effects that I should be trying to overcome as well?
Maybe I'll have to get my laser temp gun and do some measurements of the tank, the wall and floor near the tank and the wall and floor ~6 feet from the tank (and maybe the rest of the basement walls/floors for comparison).
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