Guys, Is it worth it to purchase a water heater blanket? My 80 gallon water heater is inside my home and exposed to room temperature. I have it set at about 120 degrees and it never feels warm to the touch on the outside. I could spend about $45 for an insulation blanket, but is it worth it? 6 year old 80 gallon American ProLine electric rated at 5165 KWh per year on the energy guide sticker.