They can, but no. Lots of single family homes burn to the ground with very minor damage to their neighbours (unless attached. Even then its smoke damage)

So if you need me to qualify my wishful thinking that a shit bag landlord would lose their rental home to a fire, thus fulfilling the karma due to them for overcharging after a terrible fire:

“I hope their house burns down in a safe and contained manner, not during any other heavy wind or nearby fires, while noone is home, and the fire fighters have had time off and are happy to be back on the job, but sadly didn’t get there before everything was completely ruined.”

“Also their insurance doesn’t cover fire.”

Hope that helps.