A two-bedroom cottage worth more than $200,000 in Colac has been destroyed by fire in Rifle Butt Road.
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Colac police Sergeant Dale Menzies said the alarm was raised at 10.20am on Wednesday night.
He said when Country Fire Authority brigades arrived the cottage residence was fully engulfed in flames.
The dwelling was extensively damaged, the cause of the fire is yet to be established and investigations continue into the cause of the blaze.
The owner of the property was at home but not injured.
A Victoria Police arson chemist is on the way to examine the damaged building with the CFA fire investigator.
CFA brigades were called back to the scene about 12.50am after the fire restarted.
Volunteers again extinguished the flames.
The home owner is assisting police with their inquiries.
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