I didn't realize it at the time, but we since found out that it was very close to life-threatening. The furnace that caught fire is on the other side of an adjacent wall, inches away from where my wife was sleeping. If it had gone on longer the fire would have reached her.
As it turns out, the records and CDs have been treated and are probably playable. The jury's still out as to whether the equipment is salvageable. It, too, is being treated to see if it still works.
the only silver lining is that they are rebuilding the music room and are customizing it for in-wall media storage.