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If you don't have a jacket for your water heater, odds are you're wasting the warmth. Consider insulating your unit to reduce heat loss and save a little cash—about $20 a month, according to the U.S. Department of Energy. To test to see if your water heater needs additional insulation, simply touch it. If it feels warm, it could probably use a blanket, but check your owner's manual first to make sure your model can be covered.
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