If your older water heater feels warm to the touch, buy a water heater blanket and save up to 9% on your water-heating costs. Check the caution label on your water heater. Newer models come with proper insulation and some even prohibit installing a blanket. Finally, don’t cover the inspection plate with the blanket, it could be a fire hazard. You can also get additional combined savings by updating to a more energy-efficient water heater and clothes washer.