We do have engine fires. I just saw somebody last night in a P-38 trying to land with his engine on fire. There's no fuel tanks in the boom so it must have been an engine.
Also, other bombers do have engine fires (Ju88s, maybe B-26s). Just depends on what/where the fire is modeled.
We definitely don't have engine fires. Even though on some aircraft the flame appears near or at the engine, the game still models it as a fuel tank fire...i.e. end result is always a boom. I think its ironic because in RL they were far more common than the fuel tank fires we have in game.
I had posted earlier about this, and the various other effects engine fires could bring.
1. Engine fire corrective action in game could be simply modeled as an engine shut down (fuel cutoff).
2. On shutdown the fire may die (always dies for planes that were equipped with extinguishers in RL) or may continue smoldering.
3. If you don't shut down or if fire keeps burning after shutdown, the engine overheats and dies of course, but may also cause a wing tank fire or structural failure (this is for planes with engines on wings) or for fuselage mounted engines, well a continuous engine fire trailing behind the engine and into the cockpit could cause a pilot wound (maybe a bit quicker death than with a normal pilot wound).
My $0.02