Such panic may be started by fire or burglary (5)
I believe the answer is:
alarm
'such panic' is the definition.
'alarm' can be an answer for 'panic' (alarm can mean panic or fear). I'm not certain of the 'such' bit.
I can't explain the remainder of the clue.
Can you help me to learn more?
(Other definitions for alarm that I've seen before include "Tocsin" , "Scare or worry" , "Trepidation" , "Warning siren" , "Panicky concern" .)