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A Christmas tree fire can be avoided if the base of the trunk is cut one to two inches before being placed. The tree should be placed at least three feet away from any heat source such as candles, fire places, heat vents, lights or radiators. The tree should never block an exit. A natural tree should have water daily. They are not dead the moment they are cut from the ground, adding water can keep them viable and less likely to burn quickly. When stringing lights, it is good to note whether the lights being used are for indoor or outdoor use. Few light set ups are used for both indoor and outdoor.
On the subject of lights: preventing a Christmas tree fire will probably require the inspection of lights. It is prudent to replace any lights with worn or broken cords and loose bulb connections. Like any electronic device, loose cords can lead to disastrous results. It is a good idea to never string more than three strands of mini lights per connection. If using screw in bulbs, it is good to not go over 50 bulbs per connection. One should never use lit candles to decorate their trees. When leaving the house or going to bed, the lights to the Christmas tree lights should be turned off.
The biggest thing to remember to prevent a Christmas tree fire is to discard the Christmas tree once it has started dropping needles. A tree will stay alive for a while if it is continually watered, but eventually the shock of severing it from the ground will reduce its nutrients and it will die, slowly. If it absolutely must be a natural tree, contact recycling centers. Here the tree can be turned into something useful after the Christmas season.