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Tools Needed: Wrench. Foam insulation sheet. Insulate faucet cover (optional). Rope. Directions: 1  Make sure the outside faucet is turned off before you begin. 2  Remove all water hoses and drain them. 3  Coil hoses and store them in your garage. 4  Shut off the water valve that feeds water to the outside faucets.nsulate faucet cover (optional). Rope. Directions: 1  Make sure the outside faucet is turned off before you begin. 2  Remove all water hoses and drain them. 3  Coil hoses and store them in your garage. 4  Shut off the water valve that feeds water to the outside faucets.
Put a water heater insulation bag or radiant-barrier foil insulation around your water heater when the temperature is set correctly, but the water still takes a long time to get warm.. Be sure not to block the air intake for a gas heater or get too close to the pilot light access panel.ips & Warnings. 1  Insulate all the visible hot water pipes. 2  Insulate the first few feet of the cold water inlet on the hot water heater. 3  Foil tape is more expensive than duct tape but it does a better job in the long term. 4  Do not to block the air intake or pilot light for your hot water heater.