Your inspection contingency allows you to physically inspect the home from top to bottom.
And during your inspection period, you should also be calling around and looking for fire insurance.
If, for whatever reason, you can't find a insurance company to insure the home, you can back out of the deal and use your inspection contingency as the reason why.
You can say that you did not know the home was in a severe fire danger zone and need to back out of the deal because of that reason.
