A Waihi family is in limbo after losing almost everything in a fire that ripped through their home at the weekend destroying possessions and leaving the house unliveable.

Daphne Brown was on her way to work in Tauranga about 4am Sunday when she received a distressed call from her daughter saying their Waihi Beach Road home was on fire.

Fire gutted this Waihi Beach Road home at the weekend.

Chelsea Sadhu on the deck of the destroyed Waihi home.

Inside at the time were Daphne's partner, 2 and-a-half-year-old grandson and daughters, aged 15 and 20.

All four were sleeping when the 15-year-old woke to find her room filled with smoke.

'The room filled up with smoke and she opened her eyes twice because she thought she was dreaming. She looked again, the flames were up on the wall and it really scared her.

'She's still in shock. Even my partner is having nightmares because it happened to her room and he could have lost her.”

The family was able to escape the home before the fire spread and by the time Daphne arrived were waiting at the property owner's house across the road.

'I was glad that they were out and safe and sound. But we couldn't retrieve anything from the house.

'You can't even walk near it because the whole thing is just shattered.”

Three fire appliances from Waihi were called to the blaze and arrived to find it well-involved. About half the total home was completely destroyed.

Waihi Volunteer Chief Fire Officer Moe Stevens says fire safety officers are still investigating but believe the fire started in a stereo system in the teen's room. He says the stereo was on standby but was not turned off at the wall.

The family has lived in the home for the last five years. They are today hoping to move into a rental property in Waihi.

Since the fire, Daphne has been frantically trying to find bedding and other home essentials, including pots, pans and cutlery for her family.

The family has contents insurance, but Daphne has been told by the insurance company they cannot pay out on the full amount.

Any help in donations or goods are greatly appreciated. Anyone with bedding or other items can contact Daphne on 020 402 41391.