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Yes, a water leak poses a major fire risk at your home because water is a conductor of electricity. Water that comes into contact with sparks or electrical wires can instantly ignite flammable materials. Additionally, any type of exposure to water can cause wires and other electrical components within your home to corrode. When assessing categories of water damage, it's important to know that even a small amount of moisture near wiring could cause sparks that lead to a fire.

Costs range from $500 to $5,000, depending on fire alarms, sprinklers, and safety equipment.

Some Christmas lights are marked as being “UL Safety Certified” or Underwriters Laboratories Safety Certified. This lab is a trusted source for determining the safety standards of electrical products—you should make sure your Christmas lights have this label. Brush up on other electrical safety tips before installing any lighting features. 

After a house fire, you should not reenter your home unless the fire crew has told you it’s safe to do so. In the longer term, you should not attempt to make repairs to the house on your own. Professional crews are trained to clean up after a fire (including smoke and soot damage), dry out any water damage from the firefighter crews, and make the necessary structural, plumbing, and electrical repairs—and this is all likely covered by insurance.