What is the major concern with grounding an appliance incorrectly in residential wiring?

The major concern with grounding an appliance incorrectly revolves around the potential for electrical fires. Proper grounding ensures that any fault current can be safely directed away from the appliance and toward the ground. If an appliance is not grounded correctly, it can lead to situations where electrical faults go unaddressed, causing excessive heat buildup due to electrical arcing or short circuits. This heat can ignite surrounding materials, especially in a residential setting, thereby increasing the risk of a fire.

While appliance damage and voided warranties are valid concerns, they do not compare to the immediate life-safety risk posed by incorrect grounding. Additionally, the lack of a safe conduit for electrical current relates to how current is managed during faults — without proper grounding, the current may not have a reliable path, increasing the chances of dangerous situations rather than merely damaging equipment. The direct threat to life and property makes electrical fires the paramount concern with improper grounding practices in residential wiring.