UPDATE, Monday, 9am:
Warrnambool's Dean Hilton and his mother Sandra are being hailed heroes after helping evacuate residents from a burning unit.
Mr Hilton said he was woken by his mother about 7.30am after residents smelt the fire at the Barbro Terrace three-storey apartment.
He said his mother entered the unit first and he followed, helping to evacuate the male resident and his wife.
A Warrnambool man in his 50s was taken to the Warrnambool Base Hospital for observation suffering smoke inhalation.
"He and his wife were still in the unit. I went upstairs with Mum, she went first. She was unreal," Mr Hilton said.
"We were just there to try and get them out. There was a lot of flame mate.
"There was smoke but a lot of flame. Mum alerted me. I was just getting ready to go to work. You could smell it, the whole neighbourhood could smell the smoke.
"Everyone is fine brother, that's the main thing," he said.
Fire Rescue Victoria Warrnambool brigade Commander Greg Kinross said a full investigation would be launched, but the initial assessment was that the fire was caused by an electrical fault.
He said it appeared that the fire had been contained to the top floor of the apartment.
The commander said preliminary investigations indicated that the fire was started via a powerpoint.
"Early indications are that it's an electrical fire of some description," he said.
"Fire investigators will examine and determine the cause.
"People were evacuated. One male was taken to hospital with smoke inhalation. He was being assessed but appeared to be OK.
"The crews did a good job containing the fire to the top floor. A council building surveyor will assess the damage," he said.
Earlier: A man has been taken to Warrnambool hospital for observation after a fire in the top floor of a beach-side unit just before 8am Monday.
At least six Fire Rescue Victoria vehicles, Powercor, Warrnambool council staff, police and ambulance officers attended after the alarm was raised at 7.46am at the Barbro Terrace address.
Fire fighters believe the fire was sparked by an electrical fault involving a power point.
At this stage the fire looks to have been contained to the top floor of the unit.
The man was taken to Warrnambool Base Hospital for observation due to smoke inhalation.
Warrnambool City Council structural engineers are expected to examine the unit during the day.
Firefighters think the the blaze was contained to the top floor but the damage bill is expected to be well over $100,000.
More to come.
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