"The house is well involved, there are no persons unaccounted for or reported missing," he said.
"Firefighters are monitoring the surrounding bushes and houses to the house."
The ablaze house measured 25m by 30m, Nicholson said.
Police said just one person was believed to be inside the house as the fire broke out and they were being assessed by St John ambulance.
Officers were assisting with cordons outside the house, a police spokeswoman said.
A nearby resident said the smoke from the fire billowed high into the night sky.
"It's really windy outside, the wind is spreading the smoke, it's really high," she said.
"It's really sad, it's probably someone's home."
A witness sent photos of the blaze to the Herald, saying: "Sad someone must have lost memories, home and valuables. Hope people are safe."
A fire investigator will be at the house tomorrow.
Another witness said the fire was "massive" and could be seen from as far away as Wayne Francis Drive in Dannemora, at least 3kms away.