Anyway I know that fire damaged engines are dangerous, because I believe it has something to do with the rubber melting which makes it become acidic and very dangerous. I know there's a long word that describes the stuff that's produced, but I can't think of it right now.
There are lots of words for the stuff produced by burnt rubber;
dioxins, furans, PAHs (Polycyclic aromatic hydrocarbons), PCBs (Polychlorinated Biphenyls), hexavalent chromium (Chromium (VI) - is known to be toxic and carcinogenic), cadmium (toxic). Other toxic byproducts from burning rubber used in minis (tyres, rubber cones etc.) include mercury, lead, nickel, beryllium, xylene, toluene, phenol, mono-chlorobenzene, napthalene, formaldehyde, acetaldeyde, and dozens of more products of incomplete combustion. All VERY nasty stuff, and some are strong irritants as well.
ALWAYS handle burnt rubber parts with gloves, never touch with bare skin - as well as irritants some chemicals produced can cause "Contact Dermatitis" and other skin problems.
Fingers crossed, 'n I'm sure this is one occasion Skull won't mind if he's proved wrong. You do see some fire damaged cars advertised as repairable salvage so hopefully...
Skull...? me (Skum)? Anyway, yeah some cars are sold as fire damaged repairable, but these may not have gone through the normal insurance route, or may have been purchased from a salvage dealer after the insurance company wrote them off - but again this depends on the type of fire involved (small engine fires are usually repairable, gutted interiors are usually hotter and damage the shell, so are not repairable).
I'm no expert on this, and neither are insurance companies, so they tend to be over enthusiastic when it comes to CAT ratings with fire damged vehicles (too much risk of being sued due to dangerous vehicles being put back on the road..). Post some pics up if you can, I'm sure we will be able to say if the car can be repaired safely (and legally).
Keep on top of the location of your car, as I said - insurance companies have been known to send cars off to the scrappers before settling the claim (possibly as a way to FORCE you to accept the claim...). Don't be suprised if they tell you the car cannot be fixed (even if it can), and be aware they tend to send vehicles that have been scrapped to other parts of the country (they do similar things with ex-company or fleet vehicles that are sold to the public) so original owners cannot retrive the car.
Good luck, and hold out against the insurance if you think the car IS salvageable! Try to force for a CAT C, which is repairable but will need a VIC check.
SS