Tracy Ann Gardiner, a mother-of-two, was found dead in her smoke-filled bedroom in Tantobie, near Stanley, last October.
Brave passers-by tried to rescue her but were unable to reach her due thick black clouds of noxious fumes within the terraced property on Unity Terrace.
Crook Coroners’ Court was told Ms Gardiner, who was 46, had a long battle with alcoholism and tests showed she was severely intoxicated at the time.
Firefighters believe her hair extensions caught fire as she lit a cigarette in the kitchen which then dripped on to her clothing as she made her way to bed.
The alarm was raised at around 9.15am on Sunday, October 15.
Stuart Tinnion, who lives locally and was walking his dog at the time, said: “I looked up and saw black smoke billowing out of the upstairs window.
“I brayed on the front door with my fists as hard as I could to try to alert anyone inside however nobody came to the door.”
Mr Tinnion dialled 999 and warned neighbours while David Bennett, who also came into the street went around the back.
Mr Bennett said: “I could see smoke at the upstairs window.
“I knocked loudly on the downstairs window and got no response.
“I ran through the cut and entered the back gate.”
Mr Bennett said there was a key left in the back door so he entered the property.
He said: “Everything was calm downstairs.
“I ran to the bottom of the stairs and looked up.
“I noticed black heavy smoke at the top. I was in two minds but I thought it was too dangerous to go upstairs.”
After raising the alarm Mr Tinnion ran around the back to see if he would help.
He said: “I thought if there was half a chance of getting them out, I was going to try my best.
“I got halfway to three-quarters of the way up the stairs.
“All I could see was dense thick black smoke.
“I was unable to see my hand in front of my face so I thought for my own safety I should get out.”
Firefighters arrived and tackled the blaze using specialist breathing apparatus.
Ms Gardiner was found in bed badly burned and she was pronounced dead at the scene by a paramedic from North East Ambulance Service.
The inquest heard Durham Constabulary found there were no suspicious circumstances and no third-party involvement.
The inquest was told Ms Gardiner’s body was identified using DNA samples that matched with her father.
Home Office Pathologist Sam Hoggard examined her body and concluded the cause of death with the effects of fire and acute alcohol intoxication.
Craig Jewkes, the head of fire investigation at County Durham and Darlington Fire and Rescue Service, said firefighters found patches of smaller fires downstairs.
He said: “Looking at the evidence we found in the kitchen and the dining room allowed us, we believe, to identify the cause of the fire.
“Tracy let a cigarette, possibly at or around the kitchen table, it has unfortunately caught on part of her wig or synthetic hair and she has moved away into the hall.
“The hair has stopped burning in the sense that it was no longer dripping on the floor but it has dripped onto her clothing.
“The burning synthetic hair has dropped into her clothing. We found no drop marks on the way up the stairs but did find it in her clothes.
“That is the only cause we can identify it directly.”
Ms Gardiner had been alone in the property the night before having earlier bought a bottle of vodka.
Assistant Coroner Rebecca Sutton recorded a verdict of misadventure.
She said: “The fire investigator believes, and I accept his evidence, that it is likely that the fire in the kitchen was started by a cigarette setting fire to Tracey’s synthetic hair.
“The molten synthetic hair has dripped into the clothing and started to burn and she went upstairs with her clothes still burning or smouldering.
“The burning or smouldering clothes came into contact with the bed material which then fire and the significant fire developed on the bed.”
