Help! Firewall insulation inside of engine bay started burning badly!
 

As title states, the insulation in my 850 non turbo started to burn from right above the exhast flex pipe. I dont know why or what caused this, but the car was noticeably louder eight before i started to smell the burning while driving. I put out the fire and ripped out the insulation in the process. Any guesses? Theres no damage except scorch marks and now lack of insulation. What could i do to improve this situation?? Any advice or guesses would help!

not uncommon for the flex pipe to crack open on 850s - you are hearing that exhaust leak. Sounds like the exhaust is coming out of the leak hot enough to cook some insulation or oil residues on the chassis so its time to fix the exhaust. You may be able to find a short flex pipe or the replacement for the whole section - check Volvo friendly stores like IPD and FCP or EEuro parts to see what's available.

Thank you for the reply! it is very likely, i appreciate it very much.