No. It looks like you're totally right and the information I've shared is misleading, so let me do my best to correct that:
Insurance will pay out, provided electrical fires are covered by your policy.
They will then do their best to assign liability and pursue subrogation. If you did the work yourself, you're liable. If you're insured for that work, they'll come after your insurer. If you're not, they'll come after you. If your work is permitted and to code, you'll probably be fine, if not, good luck!
So it looks like you're correct! Unlicensed work appears to be covered, but you may paid AND sued.
Insurance will pay out, provided electrical fires are covered by your policy.
They will then do their best to assign liability and pursue subrogation. If you did the work yourself, you're liable. If you're insured for that work, they'll come after your insurer. If you're not, they'll come after you. If your work is permitted and to code, you'll probably be fine, if not, good luck!
So it looks like you're correct! Unlicensed work appears to be covered, but you may paid AND sued.