Not sure how a camera would help with a fire.
But you bring up a really good point about insurance: Pay the money for that, and you don't need to worry. Just get on with your life, knowing everything will be made good should the worst happen.
Are you suggesting the camera could replace insurance and save money on premiums?
I think he is saying that the camera provide video evidence on what happened. I.e. the fire started in the neighbor's house instead of his house.