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Here are step-by-step instructions for installing an insulation blanket on an storage water heater.
Cut the tank top insulation to fit around the piping in the top of the tank. Tape the cut section closed after the top has been installed. Fold the corners of the tank top insulation down and tape to the sides of the tank. Position the insulating blanket around the circumference of the tank. For ease of installation, position the blanket so that the ends do not come together over the access panels in the side of the tank. Some tanks have only one access panel.

Secure the blanket in place with the belts provided. Position the belts so they do not go over the access panels. Belts should fit snugly over the blanket but not compress it more than of its thickness. If working alone, use tape to hold the blanket to the top until you get the belts into