Fire destroyed a single storey weatherboard house in Gibson Street, Korong Vale, just after 7pm on Sunday.
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Paramedics treated the property's two occupants for minor shock and possible smoke inhalation but there were no other injuries.
Neighbours alerted the residents to the fire which police suspect was caused by an electrical fault.
Senior Constable Daniel Burge of Inglewood Police said the house's occupants had stayed with close friends in Korong Vale overnight and emergency accommodation would be provided if required.
CFA crews had brought the fire under control by 7.41pm.
Investigations into the cause of the fire are continuing.