A local family escaped injury after their timber Bannockburn Road home was destroyed by fire at about 1.45am on Thursday.
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A neighbour noticed smoke coming from the house and alerted the occupants.
A 42-year-old man, a 44-year-old woman and their two-year-old daughter escaped from the house without injury.
Fire and Rescue NSW arrived a short time later and extinguished the fire.
The blaze is believed to have been caused by hot ash from a wood heater, firefighters said.
The house has since been cordoned off.
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Inverell’s George Street Children Centre are running a donation drive for the family if any Inverell Times readers would like to assist.
Clothing and essential living items, such as nappies, basic hygiene and women’s sanitary items, would be greatly appreciated.
To find out how you can assist this local family phone the centre on 6722 5169.
Police are reminding locals of the importance of having working smoke detectors installed and minimising hazards caused by heaters.