Hot water costs the average home about $400.00-$600.00 per year. To keep this expense down, cover your water heater with an inexpensive water heater blanket. You can get these at any home improvement/hardware store or, of course, Amazon.com. Touch your water heater. If it is warm to the touch, heat is escaping. This is why you need the cover. The price of the cover will save you much more on your hot water bills in the long run.