My ship is exploding on entry, what do I do?

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My ship consists of a pod with a parachute on top and a science lab at the bottom. Now with the new update for KSP, my ship burns and my parachute gets destroyed when entering Kerbin. How do I stop my parachute from getting damaged?
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Boat Engine Explosion
Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.
Images: Max Vakhtbovych, Teona Swift, Дмитрий Трепольский, Brett Jordan