A fire that damaged two homes in southwest Kitchener early Wednesday morning is being considered an accident.

The fire was reported around 2 a.m., in a backyard on Tamvale Crescent in the area of Fischer-Hallman and Bleams roads.

Everybody inside nearby homes was able to escape before their buildings caught fire.

One person was taken to hospital to be treated for smoke inhalation, and released later in the day.

According to Waterloo Regional Police, the fire began on a back deck before spreading up to the roof of the house, then to the semi-detached home next door.

Damage was initially estimated at $300,000 – an estimate later upgraded to $495,000.