Could you clarify? Does the non-coverage apply only to the device itself, or anything damaged by the fire started by the device? Does it apply to all home insurance policies?
I'll over generalize as elements are specific to where you live and the building codes that apply. Let's first start off with the basics which is suitability of application. I'll use something people are very familiar with and build up from there to offer more insight and guidance.
Outlet: The average person would think any kind of 120 VAC outlet could be installed outside - wrong. Everyone knows any outside outlet must be GFCI protected either by a breaker / GFCI outlet. Next, said outlet must be Weather Rated (WR) it can't be a regular outlet. While other locations also mandate said outlet be
Tamper Proof.
Any outlet that see's extended use must also employ a
In Use cover and not the typical spring loaded swinging side door type.
All of the above also mandates the equipment be UL / cUL approved / certified. Obviously, it also calls out said equipment is installed per local building codes such as height, depth, and distance etc.
As it relates to the installing any electrical in a wall anytime there is a break in line. Said break / connection point must be accessible to the end user. Said access must be enclosed in a properly rated enclosure for the environment its intended for say metal vs plastic. Add to this many cities mandate said enclosure use a water proof & weather rated gasket as seen in many outside outlets.
Again, the
enclosure is properly UL / cUL rated for the intended purpose . . .
Some may wonder why I called out this one element because people have literally installed cardboard boxes as an
Enclosure
So now if a person installed a properly rated enclosure, made it accessible, on paper and by code are we fine to stick that POE Extender up into the attic?!?
No . . .
Why???
Because the literature clearly states the device is
Intended to be installed indoors.
Everyone knows when dealing with any insurance company is they will find any reason to deny a claim. The first thing they do is identify root cause for said fire. If they find that POE Extender tucked up and inside of the attic space regardless of the properly rated enclosure. They can quickly Google that device has no safety markings along with the fact its clearly stated by the maker as indoor use.
So, that would be the main driver for any insurance company to deny coverage.
Lastly, depending upon where you live the use of fire retardant foam / blocking is required. Mainly seen separately floors / walls etc.