Tasmania Fire Service attended a boat fire on Ferry Boulevard in Stone Quarry Bay at George Town.
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The incident took place at 10.54am on Sunday.
George Town Fire Brigade chief Andrew Taylor said the fire had been put out in the wooden vessel by the owners before crews arrived, resulting in minimal damage.
The two owners of the boat were taken to hospital by ambulance to be treated for smoke inhalation, but were expected to make a full recovery.
Mr Taylor said it looked as though the fire was caused by an electrical fault, and did not look to be deliberately lit.
An investigation into the incident will take place on Monday.