Adding a fireplace to your existing home

Key takeaways 

• Most homeowners can add a fireplace to an existing home. Options range from electric units that cost a few hundred dollars to install to custom wood-burning fireplaces that can exceed $30,000.
• Gas and wood-burning fireplaces typically require permits and must meet local building and fire safety codes. Wood-burning models may also increase homeowners insurance costs because of the added fire risk.
• A fireplace can boost buyer appeal and may add about $1,000 to $5,000 in resale value, but it rarely delivers a dollar-for-dollar return on the installation cost.

Adding a fireplace is often easier than homeowners think. Even homes without a chimney can accommodate options ranging from plug-in electric units to custom gas or wood-burning fireplaces. Here's what to know about choosing the right type, navigating permits and costs, and whether a fireplace can boost resale value.

In most cases, yes. Homeowners can add several types of fireplaces to existing homes, including electric, vapor, ethanol, gas and wood-burning models. While some installations require extensive construction, others can be added with minimal modifications and no chimney.

The complexity and cost depend on the fireplace type and the home's layout. Wood-burning fireplaces are typically the most involved because they require a chimney system and must meet national fire-safety standards.

"There are numerous options for adding a fireplace to a home during a remodel, and the different options may require various levels of accommodations for installation," said Chris Maxson, CEO of Acucraft Fireplace Systems, a Minnesota-based manufacturer of custom gas and wood-burning fireplaces.

"With newer fireplace options, such as vapor, you can add a natural-looking flame without the hassle of routing venting through your existing structure all the way up to a full remodel to add an actual gas or wood-burning fireplace that will allow for the largest, fullest flames,” he added.

For an existing home, contractors typically evaluate wall framing, floor support and available routes for venting before recommending a fireplace type. New construction offers greater flexibility because venting systems, gas lines and chimney placement can be incorporated into the home's design from the outset.

The best fireplace depends on your budget, your home's layout and whether you want heat, ambiance or both. Here are the five main options.

Wood-burning fireplaces offer the traditional crackling fire, scent and heat many homeowners want. They require a chimney system and are typically the most complex and expensive type to add to an existing home.

"Wood-burning fireplaces provide the traditional warmth, sounds and smells associated with the traditions of having a fireplace in the home," said Maxson.

Prefab units typically cost about $1,900 to $5,000 installed, while custom masonry fireplaces can exceed $30,000.

Gas fireplaces provide real flames without the work of storing wood or tending a fire. Most can be turned on with a wall switch or remote control.

Direct-vent models exhaust through a pipe in an exterior wall or roof, eliminating the need for a full chimney. Ventless models require no venting but are restricted or prohibited in some jurisdictions because of air-quality concerns.

Installed costs generally range from about $2,300 to $10,000, including gas-line work.

Electric fireplaces are the easiest and least expensive option to install. Most plug into a standard outlet and create the appearance of flames using screens or lighting effects.

They provide supplemental heat but are often chosen primarily for aesthetics. Expect to pay about $200 to $3,000 installed.

Vapor fireplaces use water mist and LED lighting to create a three-dimensional flame effect. They require no chimney, venting or gas line and remain cool to the touch.

Installed costs typically range from about $1,000 to $4,000.

Ethanol fireplaces burn bioethanol fuel to produce a real flame without a chimney or gas connection. They are relatively easy to install but generate limited heat and require ongoing fuel purchases.

Most cost about $700 to $3,000 installed.

Homeowners in condominiums or communities governed by homeowners associations should review community rules before starting a project. Some associations restrict or prohibit wood-burning and gas fireplaces, making electric, vapor or ethanol models the most practical alternatives.

Source: HomeGuide

Permit requirements depend on the fireplace type and local regulations. Gas and wood-burning fireplaces typically require building or mechanical permits, while electric models may require only an electrical permit or none at all if they simply plug into a standard outlet.

Combustion fireplaces must meet fire-safety requirements, including standards covering chimney construction, clearances from combustible materials, hearth dimensions and venting systems.

"Each state and municipality has their own sets of regulations as they pertain to fireplace installations," said Maxson. "Your fireplace installer will know the local codes, as well as any unique considerations for the installation of your fireplace."

Maxson said one of the most common mistakes is failing to follow the manufacturer's clearance requirements, which can vary by model. Working with a certified installer can help avoid costly errors and code violations.

Some states impose additional requirements. Daniel Levin, a partner at Haber Law and a board-certified specialist in construction law, said only certain licensed contractors can perform permitted work in Florida.

"In Florida, permitting is governed by the Florida Building Code," Levin said. "Certain types of construction activities, not all improvements, require a permit. Even more, only certain licensed contractors can perform specific construction activities requiring a permit."

Levin added that improper waterproofing around a new chimney or vent pipe can lead to leaks, mold and expensive repairs, making it especially important to hire a licensed contractor who obtains the required permits.

The unit price is only part of the total budget. Maxson said homeowners should look beyond the sticker price.

"In addition to the cost of the fireplace you should also be aware of the costs associated for the venting and chimney system as well as the cost of installation by a certified professional,” Maxson said.

“These costs will typically at least double the cost of the fireplace on gas or wood-burning units. With an electric or vapor fireplace system there are not the additional costs for the venting and chimney systems.”

According to HomeGuide, a home improvement cost-estimating website and contractor marketplace, homeowners should also budget for finishing materials.

Tile surrounds start at about $1,000, brick surrounds at about $1,500 and marble surrounds at about $5,000. Mantels typically cost $100 to $3,000, while installing a new gas line can add roughly $500 to $2,200 if one is not already available.

One cost many homeowners overlook is insurance. Because insurers often classify wood-burning fireplaces as a higher fire risk, installing one may increase homeowners insurance premiums. Gas and electric fireplaces are less likely to affect rates, but homeowners should check with their insurance provider before choosing a fireplace type.

In many markets, yes, but usually not enough to recoup the full installation cost. Fireplaces tend to be most valuable in colder climates, where buyers often view them as a desirable feature rather than a necessity.

Real estate professionals generally estimate that a fireplace can add about $1,000 to $5,000 to a home's resale value, depending on the market, the quality of the installation and the home's price point. Fireplaces in main living areas such as living rooms and family rooms typically have the greatest appeal.

Maxson said several factors influence whether a fireplace adds value, including how well it matches the home's existing finishes, whether the design will still feel current when the home is sold and the age of the unit at the time of resale. He added that while fireplaces remain especially popular in northern markets, modern models are helping expand demand in warmer regions.

Homeowners considering a fireplace should view it primarily as a lifestyle upgrade rather than an investment.

As Maxson puts it: "The No. 1 consideration to consider is if you will enjoy the fireplace while you own your home. If you design the perfect space to curl up with a book in front of the fireplace or to host the best parties around the fireplace you will never regret the investment. If you make the investment in a space you love, others will love it as well."

Maybe. Many condominium associations and apartment buildings prohibit wood-burning and gas fireplaces, limiting residents to electric, vapor or ethanol models. Some buildings also restrict heat output or require additional fire-safety measures. Check your association rules and obtain written approval before purchasing a unit.

It can. Wood-burning fireplaces are often considered a higher fire risk and may increase insurance premiums. Some insurers also require a chimney inspection or certification before issuing or renewing coverage. Gas and electric fireplaces are less likely to affect rates.

The timeline depends on the fireplace type. A plug-in electric unit can be installed in less than an hour, while a direct-vent gas fireplace typically takes one to three days. A custom wood-burning fireplace with a new chimney can take several weeks, depending on permitting, inspections and structural work.

An electric fireplace is usually the least expensive option. Installed costs typically range from about $200 to $3,000, while basic freestanding units that plug into a standard outlet can cost only a few hundred dollars and require little to no construction.

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