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Our climate in southern NC is probably similar to GA. Our heavily insulated tank is in the garage (it never gets below 40 in there) and whatever heat is in there leaks through the house walls. The lines have a very long run though a high crawl space on a heavy brick foundation and they have the usual Lowe's split foam insulation. Verdict: I don't know if it really makes much difference, the long pipe run takes maybe 1 or 2 minutes to get hot water to the master bathroom shower and it seems like that was the case before the insulation was added. Meh.
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