If it's orange and black it's meteor. If it's just orange and kind of yellow - then it's a fire accident. Also - the game doesn't always move your camera over if they catch fire especially if you're moving stuff around with the camera yourself. Your controls are a priority over the games. Another thing is that even with fireproof homestead, you can still have a Sim die by butt fire via sculpting or inventing.
Just like it was mentioned a few questions up about rezzing the father - if the rules don't forbid it then it's allowed.