Three restrictions apply. You divided by h to reach the simplified form, so h=0. And f must be defined at both inputs of the difference quotient, at x and at x+h, so neither denominator is zero.
h=0,x=0,x+h=0
The last condition is the same as x=−h. The simplified expression by itself is fine at h=0, where it equals −x21; the exclusion of h=0 comes from the division that produced it.