Fire crews said the popular electrical product was charging in a girl's bedroom in the Melbourne suburb of Strathmore when the blaze started.
Local media said the girl saw sparks coming out of the hoverboard.
Metropolitan Fire Brigade Acting Commander Phil Smith said the family was lucky to escape unhurt, but the home was severely damaged.
"It overheated for some reason and caught fire and no one saw it till it was too late," Acting Commander Smit
"In this case the family was fortunate to be able to get out of the house."
He said it served as a warning not to leave charging items unattended.
Last year UK consumer protection agency National Trading Standards found that 88% of the self-balancing boards they examined could explode or catch fire.
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