It broke out about 2 a.m. on Wednesday on the back patio of the home on Akers Way near Palm Drive in Dinuba.
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Fire crews arrived to find large flames coming from the backyard area.
They say a dropped power line to the home kept firefighters at a distance until PG&E crews could come out and turn off the power.
The fire spread from the home's exterior to the attic.
A husband, wife and their adult son were able to get out safely.
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Their two dogs died in the fire.
The home is a total loss, along with materials from the family's piñata business.
The cause of the fire is under investigation.
The Red Cross is helping the family with temporary housing.