As you can see the pot lights are covered with cardboard boxes, definite fire hazard, this happened to be a handyman special. Pot lights installed in the attic require a metal or insulated container surrounding the lights to avoid contact with the insulation. I suggested to my client to have a licensed electrician install the correct containers according to the manufacturers requirements. If you are installing pot lights and using halogen bulbs, refer to the manufacturers installation requirements. Halogen bulbs give off a high amount of heat which may require updating old wiring and using insulated containers surrounding the lights. Another concern is air leakage, the pot lights should be sealed to prevent warm air infiltrating the attic or air infiltrating the room below. Moist air infiltrating the attic could condense and possibly form mould on the wood structure.