Yes, but only over specially designed downlights. Aurora Lighting have recently introduced an insulation coverable downlight. This patented product is fitted with an insulation cover cap. This cap acts as a barrier between the insulation and recessed downlight and ensures that any excess heat does not pose a fire risk to the insulation.

Or if you want to install an integrated LED downlight then check out the Aurora M10 and add an insulation cover cap:

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Technically any downlight that carries the F Capped approval can also be covered with insulation such as the Halers H2 LED downlights and Click low energy downlights with part numbers CF300, CF309, CF395, CF400, CF409 and CF495.

Although you can lay insulation on these downlights, the manufacturers don’t recommend it as it could reduce the life span of the lamp or LED. From my own personal experience if you've got an iCage downlight fitted with a GU10 LED, it doesn't generate any heat and poses no fire risk. I've had it covered with insulation for 3 years and survived to tell the tale.

F Capped Downlights

The F Capped logo should not be confused with the F marked logo which looks similar but has nothing to do with insulation. Whoever thought of having such similar logos should have seriously considered the similarities and considered the confusion it could cause. I've personally seen quite a few Chinese imported downlights with the F Capped logo when it was meant to be the F marked logo.

The F marked logo / approval is fairly common and means that downlights are suitable for mounting onto normally flammable surfaces such as wood. Both logos can be found below:

F Marked LogoF Capped Logo
Alternatively you could use a loft cap. A loft cap can be fitted over any downlight and acts as a barrier between the downlight and insulation. Loft caps are F Capped.

Most downlights these day are insulation coverable as standard and some have an optional version that has an insulation cover guard, such as the Integral EvoFire shown below:

Integral EvoFire
Integral EvoFire