Electrical Box Regulations – Is There a Fire Hazard in However, new regulations have made it so that a home electrical box has to be attached outside the home. This regulation was imposed in part by the fire department, so when fire fighters arrive at a home that is aflame, they can quickly shut off all the electricity to the house. What Causes a Breaker Box to Catch Fire? | Hunker Degraded components are faulty and will eventually cause sparking and possibly fire, according to K.I. Security Enterprises. Although an electrical breaker box is designed for safety, it is not entirely fireproof. Sparks inside the box can set it on fire, and the fire can spread throughout your home quickly. Breakers are simple to inspect.