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Which house would you rather own? The theory of insulation works the same for houses as it does for spas. House A illustrates the proper method for maximum efficiency and prevented heat loss. Common sense tells us that spas should be built the same way, but the fact is most spas are insulated like House B. The majority of the insulation is in the basement, and the hot water heater and furnace equipment is outside of the insulated area. Incidental heat from the heater and pumps escapes outside to the environment, resulting in higher energy costs.
Now the same concept applies to your spa. In a Coyote Spa, ambient heat from the pump penetrates the spa shell and heats the water. In winter, this heat returns to the pump area in the event of a power loss. Amazingly in tests, the pumps did not freeze for five days and 20 degrees below Fahrenheit.
Some spa manufacturers place their equipment under a step. This is possibily the worst method of retaining pump heat. The heat escapes from every side of the step, and in winter, the cold penetrates the enclosure very quickly. This leaves the equipment vulnerable to freezing very quickly if the power ever fails.
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