thermistor sensor

Sure

all the time. I'd use some thermal grease.

Be sure the sensor is held tightly against the tank. And yes, insulate over the sensor.

When I use electric water heater tanks I slide the sensor under those metal clips that hold the upper and lower thermostats in place. This puts a good tension on the sensor and the element insulation blanket covers all.

Another method is to use a stainless hose clamp and fasten it to the pipe as it exists the tank. Then some Thermacell insulation. If you want the sensor at the very top of the tank.

hot rod

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