Yes, our clothes dryer caught on fire like 7 years ago and the whole upstairs had to be gutted back to the studs. If you haven't done it yet this year, make sure you vacuum out the inside of the dryer (not the drum). I usually do it once a year now, and find an inch to half an inch of lint covering every surface. I can only imagine what the one that caught on fire looked like inside, we had NEVER cleaned it since we moved in 8 years earlier.
Yes, all it takes is a little spark and someone not paying attention.