The missing insulation is on the pipes within the HP omitted by LG, presumably because they expect the HP to run continuously, even though they have a feature to enable a backup boiler in cold weather. With all the bends, strainers, sensors and other pipework it would be difficult to get it all effectively insulated
The trace heating manufacturer gave a table of insulation thicknesses needed for a particular size of pipe giving 25mm of insulation for 28mm pipe so that's what we've got.
A genny powers it in anything but a short power cut. Having the trace heating is more for if we shut the HP down in very cold weather to run on the WBS rather than flog the HP. It will also protect it if it fails in cold weather and can't get fixed quickly. At £48 it's probably cheaper than antifreeze valves or glycol??