A blessing in disguise actually. In many places that are flood prone, you can't get flood insurance. Home insurance covering fires, yes.
Neighborhood destroyed in a flood and his house burns down, they are covered.
actually people in these situations do burn their houses for the insurance. The great fire in San Francisco after the earthquake in 1906 occurred because nobody had earthquake insurance. Same in Katrina...
Spilt oilmcan trigger fire, as we know that oil is not dissolved in water and stay at the top of it. As water is electrical conductor, it might make sense the fire will lit up. The oil is usually originated from the house itself.
Neighborhood destroyed in a flood and his house burns down, they are covered.