To Insulate or not to insulate

Rhino, I appreciate your statement, but you are experienced. Our OP, by the very question is not, and so I try to give the safest, most bulletproof answer in that case, this is why I countered. Who knows if he got sold a "power routing" switch for example? Some of those buggers do strange things to the un-selected route.

Regards, Greg
 
Isolating rail joiners will do the isolating job at a more reasonable price - LGB 10260 Insulated rail joiners - gardenrailways.co.uk

I have exactly what you are doing and use a couple of LGB point motors LGB12010 and one of them has an LGB12070 supplementary switch added to allow the power to go to the correct track when the point is switched. This arrangement works fine indoors. The LGB12070 supplementary switch was not one of LGBs finest moments. I have had a bit of trouble with reliability outdoors although to be fair most of my outdoor points with these fitted are still working fine. On some of my outdoors line I have changed to using a self latching relay that is powered by the same feed as the point motors. So when the point motor is flicked then so is the relay. I have two wires from my shed (where the relay is) to the two tracks in my loop and the required track is automatically made live.
 
Our club G scale layout has a very similar arrangement to your plan albeit with an inside track as well. In this photo you can see the insulated rail joiner right next to the point. It is just below the steam loco cab in the photo. It has been painted dirty black as this looks better than bright orange. As has been said, only one track on each line needs to be isolated.
IMG_3298 (2020_10_29 12_35_33 UTC).JPG
 
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