Fire tore through a two-storey mudbrick home at Carlsruhe early last Thursday morning.
Brigades from across the district turned out to the blaze at a property on Institute Road about 2.30am.
The fire gutted the upper storey of the home while the lower level sustained significant smoke and water damage.
All occupants of the home had exited the building safely.
The fire is believed to have started in the upstairs bathroom where a towel close to a heat source caught alight.
It is not being treated as suspicious.
Appliances from Carlsruhe, Woodend, Tylden, Kyneton, Trentham, Malmsbury, Hesket, Newham, Macedon and Mount Macedon attended the scene, with support from Fire Rescue Victoria Bendigo.
Brigades returned the following morning to attend to a slight reignition of the fire.
