Recently, my wife and I were dinner guests in a beautiful home. Like hundreds of others, it's built in on a forested hill on the edge of the Gallatin National Forest. It is enclosed by trees which nearly brush the house. When a forest fire makes a run up their slope, their house is likely to burn. What should such owners do?

It depends on their acceptance of risk versus their love of living in the timber. Here's what I'd do. Rather than risking my house to forest fire, I'd call my buddy Billy-- a guy who once dumped a tree on his IH pick-up and hence for ever remembers the consequences of screwing up-and I'd cut a deal.

"Hey Billy, bring chain saws, your smallest Cat, and use my hydrolic tree jacks for directional falling. We don't want a tree crashing through our roof or smashing our deck. I'll pay you $85 per hour and you can have the timber. Buck short logs and be gentle on my yard when you skid and deck them."

Billy would cut a protective buffer, a "defensible space", between my house and the forest, and I would maintain it. Why risk losing my house when I can take steps to prevent it? Sure, it would cost me a little privacy, and my house and yard may lose some of its "woodsy" feel, but I'd willingly give that up for security from fire.

I think as an analyst, not an artist or architect. Others, more aesthetically oriented, may run the fire risk. That's fine. However when insurance rates increase to reflect risk from forest fires, they'll have incentives to reconsider their landscaping.

What we should avoid, though, is public policy which shelters people from the responsibility of these risks. We can learn from the Barrier Islands off the East Coast.

Hurricanes are a constant threat to these islands, just as fire is to the Rockies. As a consequence, beach houses, condos, golf courses, and lives are at risk on these islands. When hurricanes occur, federal disaster funds have been made available to the property owners.

The result is a moral hazard; island investors anticipate these funds when making decisions. Consequently, they shift the risk to the general taxpayer, innocent victims of political plunder.

People will continue to build homes in forests and in dry years fires will burn. Surely, we don't want to replicate the "Barrier Island Pathology" of federal bail outs. The solution lies in making people who place themselves and their property in harms way responsible for preventing fire losses.

For most home owners this isn't easy. It requires spending a little time and money.

The simplest and most effective solution is to create a defensible space between forest and home-in essence, removing fuel. The recommended size of the defensible space varies with the types of vegetation and the slope of land on which the house lies. For example, if your house is on a moderately steep slope (21%-40%) and in a forested area, the defensible space should be at least 100 feet. If your house is on a relatively flat slope (0%-20%), and even if the vegetation includes highly flammable grasses like cheatgrass, 30 feet may be adequate.

Creating a defensible space does not mean lifeless surroundings-don't cement your back yard. However, flammable plants and shrubs can be replaced with higher moisture flower beds and gardens.

Your fire protection agency, the one that responds when you call 911, will provide a risk assessment of your property. It is free and understandable. They can give you personal advice, material to read, and websites on fire prevention.

In the West, occasional fire is a risk that comes with the territory. We are responsible for how and where we build our homes and how we manage our surroundings. Fortunately, we still have a few guys like Billy, logger lifeguards against the fires which surely will return.

Our ranch isn't in a forest, and I still have my own tractors, log chokers, and a loader for logs--even though they're old and well rested. However, if I faced the threat so many thousands of home owners do, I'd see Billy. If you're worried, give me a call and I'll give you his number. Loggers can be great lifeguards.

Research assistant Leslie Whitten contributed to this article.