Four persons were taken out from the debris and the rescue operation is still on, said a police official.
The incident took place in Saraswati Nagar near Hatkoti, some 100 km from the state capital.
Police said the deceased as well as the injured were living in the building that was constructed illegally.
Police and rescue workers were helping the local people in removing the debris.
The injured persons were admitted to a hospital in Rohru.
Shimla district has been witnessing heavy rain for over a fortnight.
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