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Handbuilt masonry fireplaces are likely what comes to mind when we think about curling up by the fire at the end of the day. But bricks in the firebox and chimney tend to be heavy, which is not ideal for homes with weak or damaged foundations.

Prefabricated fireboxes come with a full flue and chimney system, significantly reducing the price and installation time. However, if you need to replace the panels down the line, you are locked into the same model or something very similar.

The cost to replace a chimney is about $10,000 on average and can cost up to $15,000, depending on the size, accessibility, materials, and extent of the replacement. Sometimes tearing the chimney down to the roof line and rebuilding it is an option. But if the chimney's internal structure deteriorates badly enough, a complete demolition down to the fireplace or the foundation may be necessary.

In most homes, your chimney and HVAC are separate from each other. However, you can use your chimney to save on heating costs in the winter. Turn off your HVAC system and start a cozy fire, then watch the electric bills drop during the coldest months. Make sure your flue is closed when not in use so that you don’t end up pumping heat or cool air from your system outside.

While you have some flexibility in the types of wood you can use in your outdoor furnace, it's important to make wise choices for optimal performance and efficiency. Hardwoods, such as oak, maple, and cherry, are generally recommended for their higher energy content and cleaner burn. These hardwoods produce more heat per volume and tend to produce fewer creosote deposits, which can accumulate and cause a chimney fire, according to the U.S. Environmental Protection Agency.