A home owner that has home insurance is financially incentivized to see that the house burns completely to the ground during a fire.
A home owner that does not have home insurance is financially incentivized to see that the house is saved as much as possible.
Insurance companies will try to prorate the payout based on how much of the house was actually physically burned.
Yes the rest of the house is unlivable but they will only pay for whats actually burned.
