Yes, let me explain using our current project. It is cool day in March and we are just wrapping up relocating two DVRs, and the 24 cables attached to them. The systems were originally installed some 12 years ago and the new fire marshal did not like their location. What changed? Why was the business given 30 days to get these items moved or else their doors would be closed?
In short, NFPA 221 and NEC Section 800. They are building codes/ standards that dictate where low voltage equipment can be stored, how wires are to be run and preventative measures to impede the spread of fire. We mainly see this in commercial installation but, we implement everywhere.
Once a hole is to be drilled between walls or between floors, the trip to Home Depot always includes this foam or caulk. I do recommend gloves because once it gets on your hands it will take days to get off. A drop cloth is also recommended. It loves carpet and leaves a lovely bright orange/red stain.
These products fill in the air gaps that can feed a potential fire. That being said, they get quite hard and are a pain to remove if you need to run more wires in the future. Let’s keep our clients, their families and their patrons safe by following these standards.