Well, I'm not sure what happens to it if your house catches fire - but if your house burns down I don't see how the battery could have made it worse.
So I imagine scenario 1 is your house doesn't catch fire, in which case it's fine, and you have power even if the grid is down, or scenario 2 where your house does catch fire, and maybe the battery contributes to that, but it would burn down either way.
But keep in mind that the 'red flag days' I'm describing where PG&E would cut power are not days where fires are actually burning in the area - just days where fires are more likely to start. They're shutting down their power lines so that if the wind knocks one down it won't start a fire. This is a response to last years devastating fires in Sonoma county, which were believed to have started by downed power lines in high wind and dry conditions.