multch catching On Fire~~~~

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I was at a cook out the other day and they were talking about mulch catching on fire in the community. I guess it was in public places like at shopping centers things like that. Then my Aunt said it is not safe to have mulch less than a foot away from your house. I am guessing that the lack of rain and the break down of the mulch is what made the smoke. Next year I was planning on putting flower beads along the sides of my house. Now I starting to wonder if it is a bad idea? I had never ever heard of this before in my life. I do know that it can break down and get very very hot but I always thought it had to be in a very large pile to do so. So is it safe or isn't it?