Am contemplating purchasing an 1960s ranch-style single family and every single interior wall is paneled (except for the bath).

Recently heard that paneling is actually a fire hazard since flames will move faster across that surface, as compared to sheet rock. Got me thinking as to why insurance companies don't require the removal, or charge more when interior walls are covered in paneling. And if paneling is such a fire hazard, why aren't hardwood floors also considered such? Or asbestos ceiling (would think "these" would actually melt from the heat of fire).

Aside from primer & painting, or actual removal of paneling, does anyone have any other suggestions. Is there a wall cover/wall paper one can apply to paneling that might be fire retardant as well as decorative?