Usually, the fire damage can be covered. Replacing a dryer that has simply broken down is a separate issue.
Why can dryers overheat?
- Lint blocks airflow.
- External vents become restricted.
- A component fails.
- The machine is used despite unusual heat or smells.
Keeping lint and heat under control
- Clean the lint filter as instructed.
- Keep vents clear.
- Stop using a dryer that smells hot or behaves unusually.
- Check manufacturer safety notices for older machines.
Fire cover is separate from appliance breakdown
Look at fire cover for the resulting damage. Appliance breakdown cover, if you want it, is normally separate.