I think foil tape is fine. I have used the HVAC type in the past. In terms of conductive, there shouldn't be any electricity flowing out of your UTH. That would be bad and dangerous for all. I wouldn't worry about that.
The bigger concern is the UTH getting too hot because it's pressed closer and "somewhat sealed" now. However, if you are using a thermostat, and you should be, the UTH should never get hot enough to worry.
Where is your thermostat probe? If it's between the UTH and the tank, it should be fine. You might have to adjust it slightly after you use the foil tape because the UTH will be adhering better.
Any other questions, feel free to ask.
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