A St John Ambulance spokesperson said two people were assessed and treated for minor smoke inhalation but neither needed to be transported to hospital.
Police cars cordoned off part of Mangaroa Rd this morning as fire services worked to hose down the charred remains.
Smoke blanketed and road and drifted to the prison, where inmates watched the fire.
At one point a man pulled up in a ute and said: "that's my house" before he was escorted onto the property by police.
As of midday fire services were at the house and a fire investigator was on the way, Meikle said.
"The house was well alight when the Fire Service turned up. The Fire Service is still on the scene," the spokesman said.