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The fire broke out around 9 p.m. on the 350-block of North Wabash Street.
Portage Fire, Gary Fire, Lake Station Fire and Hobart Police helped Hobart fire put the fire out.
The family's dog did not survive the fire, according to Hobart fire.
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Officials said that the family was likely saved thanks to attentive parents and working smoke alarms.
The family has a temporary place to stay.