No. The guy whose house burned wouldn't have gained anything... he would have been out several thousand dollars, plus the damage to his house. It's still a serious hit; it's just not a total loss.
You misunderstand.
Last year we both write checks for $75; and our neighbor doesn’t. He thinks we are fools for writing that check - it’s wasted money he says.
Then he has a fire, and the FD shows up - and puts the fire out. We look at each other and say “Wow, we are idiots, we’ve been throwing $75 down the hole every year, and we ain’t had no fire in 1-30 years”.
So, next year we don’t pay either, because we know that we’ll just depend on the good hearts of the FD to put our homes out, too. Trouble is, the FD is not supported by the county and has bills to pay. Without anyone paying their annual fee, the FD goes bandkrupt and now now one has a FD to call.
I call it “Personal Responsibility” vs “Nanny State”.