AN old fibro-cement house on Warrnambool's Raglan Parade was covered in thick smoke on Friday morning when fire spread through the building.
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Four minutes after the occupants raised the alarm at 10.22am fire crews arrived and rushed in with breathing apparatus.
At one stage flames were licking thick hedges and a fenceline beside a neighbour's home.
Another neighbouring property was also evacuated during the drama.
CFA officer Henry Barton said investigations would determine the cause of the fire which was believed to have originated in a bedroom.
More than 15 firefighters were involved in extinguishing the fire and mop-up operations which continued into the afternoon.
Powercor crews also attended to turn off electricity supply to the building.
The property is one of the original homes on the parade between Hopetoun and Laverock roads.