While initial reports were a shed had been destroyed in Saturday's bushfire, it is now understood the structure had been converted into living quarters.
Marty Webster from the Bega Valley Rural Fire Service said on Sunday, reports indicate the shed was being lived in by a resident south of Cobargo, and was completely destroyed by yesterday's blaze.
While nobody was injured, a post to social media on Sunday afternoon claimed his brother's shed home was destroyed, and friends and family had quickly begun building a "temporary house" on the property.
Mr Webster said the fire began in grass around midday on Saturday before spreading to nearby bush. By 6pm crews had brought the bushfire under control.
"We've still got work to do, but the fire is now listed as contained," Mr Webster said.
"We will be working on it for a few more days, and more strong winds are predicted for Monday."
He said the RFS arrived within minutes and a "cooperative effort" along with Fire and Rescue NSW and the NSW National Parks and Wildlife Service had helped contain the fire to just over 100 hectares.
The fire was also brought under control with the help of 34 people using 13 appliances, two helicopters and a fixed-wing plane, two bulldozers and a grader.
Residents should continue to monitor conditions. Follow your bush fire survival plan.
If your life is at risk, call Triple Zero (000) immediately.
Continue to stay up to date with the bush fire situation by checking http://www.rfs.nsw.gov.au, listening to your local radio station or by calling the NSW RFS Bush Fire Information Line on 1800 679 737.
For information on road closures, check http://livetraffic.rta.nsw.gov.au. Roads may be closed without warning.