Insulation covering the gas water heater, is it a hazard?

As you can see in the picture attached, insulation covering a gas water heater,
any risk of fire ? is it a hazard, urgent problem to solve.

Thats one of the worst installations I’ve seen.
In it’s current state it is not insulating at all.
Recommend removal.
They can also conceal defects.

Also, modern water heaters are well insulated so these extra “blankets” aren’t doing much.

Thank you very much, that’s exactly what I was thinking.

Is that in a mobile home? Just about every mobile home water heater that I have seen has one.

I agree that the one in the picture looks horrible and should be removed or replaced.

Nice link, ty!

Yes that installation is preposterous. They are factory insulated before they are sold, so using a blanket wont really do much. Cant believe someone actually did that…

James, apparently you are new, because after a while you will see and believe that people will do just about anything and everything. Most of it just makes you go…WTF?