Four people were on vacation and staying in the home on Easy Street in the village of Hall Quarry.
They told officials they heard a noise earlier in the evening but were not sure what it was.
Authorities said they were woken up by the smoke detector just after 1 a.m.
Everyone was able to get outside but when firefighters arrived the house was fully engulfed in flames.
Crews from all of the island communities and Ellsworth were called to help fight the fire. Fire marshals said the cause remains undetermined.