A fire in the early hours of this morning has badly damaged a home in a small settlement north of Dunedin.

Six fire crews attended the blaze which broke out around 2am in a single storey house in Herbert.

A Fire and Emergency spokesman said the home was engulfed by fire when firefighters arrived.

Everyone inside the property managed to get out and there were no injuries.

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A fire investigator would be returning to the house this morning to determine what caused the blaze.