It happened in Kylemore Park at about 11:50 am today, Saturday, January 14.
The woman, who is understood to be in her early 80s, was treated by paramedics at the scene and then taken to Altnagelvin Area Hospital for further examination.
Sinn Féin councillor Conor Heaney, who has visited the scene, said the house was “extensively damaged and not structurally sound”.
It is understood the address isn’t connected to the mains gas network.
Cllr Heaney said the woman who was injured was elderly.
“Neighbours broke down her door and administered first aid and removed her from the property,” he told BBC News NI.
“A nurse across the street helped her.”
Emergency services left the scene at about 2 pm.
Local SDLP councillor Shauna Cusack said her thoughts and prayers were with the woman’s family.