Why "the house(i) had a fence around itself(i)" is ungrammatical but "Susan(i) wrapped the blanket around herself(i)" is grammatical?
The explanation seems to be that in English, adjuncts do not license reflexive pronouns. (This may be too strong a way of putting it, since as curiousdannii's comment shows, for some speakers sentences like your (1) are not ungrammatical. But at the least we can say that reflexive pronouns in adjuncts are optional or dispreferred, whereas in arguments, they're obligatory when there's coreference with the subject.)
The reason for the difference between (1) and (2) is that in (2), around herself is not an adjunct but an argument of the verb.
(1) below is ambiguous between a causative interpretation (2) and a topicalized version of (3) with the implication that Susan was affected somehow.
(1) Susan had the blanket wrapped around her arm.
(2) Susan caused the blanket to be wrapped around her arm.
(3) The blanket was wrapped around Susan's arm.
Your first example with a reflexive pronoun is only interpretable as a causative, like (2) above, so it is only interpretable on the assumption that houses can cause things, which in our world is unusual.