A New South Wales family has had a lucky escape after their recalled Samsung washing machine, that was due to be repaired, caught fire.

Two adults and two children managed to get out of the house at Lake Macquarie, south of Newcastle, after the fire broke out about 6:30pm on Tuesday.

They spent several hours in hospital under observation.

Firefighters quickly removed the burning machine from the Arcadia Vale home, but the fire had destroyed the laundry.

The rest of the house was significantly damaged by smoke.

Six Samsung washing machine models have been the subject of a safety recall since 2013.

Fire and Rescue NSW Superintendent Tom Cooper said the owners had identified the machine as one of the models on the recall list, but were continuing to use it while waiting for repairs.

"Firefighters are urging people that if you do have one of these washing machines that's subject to a recall notice, to stop using it, wait until a technician comes along and fixes it," he said.

Ask for full refund: Choice

The fire prompted consumer group Choice to encourage owners to ask for full refunds on the machines, rather than wait for repairs.

Choice said there had been 196 confirmed incidents involving the machines, including 18 that had happened after repairs had been made.

"We are not confident that the repairs Samsung is making are fixing the problem," Choice spokesman Tom Godfrey said.

"The fact is, you do not want one of these dodgy Samsung washing machines in your home."

Mr Godfrey said consumers had the right to seek a full refund under Australian law.

In May, a machine caught fire in a Port Stephens home, destroying its laundry.

Earlier this month, NSW Fair Trading said 60,000 of the machines sold in Australia had been repaired, but 83,000 had not.