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Yes, it is possible. An electrical fire can break out if the compressor has inadequate ventilation. When it overheats but doesn't have a proper thermal cutout, this can cause the motor to short-circuit and catch fire. This risk is exacerbated if flammable materials, like dust and fallen leaves, are clogging the unit. The compressor overheating won't start a fire by itself, but poor maintenance and installation can increase the risk once it hits its breaking point and short-circuits.

No, a chirping smoke alarm is usually a sign of an issue with the power supply of the unit. This is easily solved by replacing the battery to stop the smoke alarm from beeping. If the chirp continues, review the owner’s manual to determine the cause. These chirps are short and not as loud as the beeping of the alarm itself. If you can’t tell the difference, it’s best to treat it like an activated alarm until you find the cause. 

Recessed lights, as with any kind of light, can be a fire hazard if not installed correctly. Because of this, it’s best to have a professional complete the installation for you. Properly installed lights should not pose a threat and often have heat sensors installed in them that turn the light off if the temperature gets too high.

The NFPA model codes and International Residential Code (IRC) mandate that all new one- and two-family homes have fire sprinkler systems. However, all municipalities are different. The best way to determine if your municipality requires fire sprinklers is to contact your state fire marshal’s office. One reason to install a fire sprinkler system is that it’s the first line of defense in putting out a fire and alerting your family of emergencies.