A fireplace insert will allow smoke into the room when you open the door to feed wood into the unit. Each time the door on the unit I used was opened a good amount of smoke escaped. It did not seem to matter how I had the air inflow set the smoke would escape the unit. When the doors are closed the smoke does not access the room as it can with a fireplace. I used a insert which was in a home we recently purchased last winter. It worked better than a fireplace a containing the smoke and putting heat into the room.
A wood pellet stove has much less odor than a wood burning fireplace insert. A propane fireplace has no odor. But the cost of pellets and propane is much higher than wood.
I think you will find a insert to be a big improvement over a standard fireplace.
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