I think it would look odd and distracting to have a surround running further up the wall. Also, I think the brick is rather well done, and I'm not a fan of stone veneer as it can look fake and cheesy in such applications.

Like Patricia Colwell I would suggest painting the brick instead of replacing with another material. Painted brick is very popular these days as it not only provides color but texture as well. If you paint that will eliminate the question of where to stop the material. Whatever you decide, good luck!

As others have said, end the surround where it currently ends. Depending on the "look" you are trying to achieve with your new renovation have you looked at other brick as a material possibility? If you haven't go to a Brick yard and see what they offer. And if there are multiple yards in your area go to all of them as they can carry different brands.

Love the dog.

I agree with the comments above. Additionally, the brick seems complementary to your current furnishings. Running the material up to the vaulted ceiling would be so very wrong for the room.

Thin veneers of non combustible stone material may not be enough to comply with the fireproofing clearances that your stove requires. Study the manufacturer’s installation and safety instructions before planning anything.

Thanks for the advise, I appreciate you all taking the time to answer. Think I see the point, that it would be best to end any material where it currently ends. Beverly, the pictures are really helpful. Thanks.
I think the brick looks better in my picture than it does in person. Both my husband and I hate it, but I hadn’t thought about choosing another brick or even painting what we have. That would save some $. I will definitely view any material in person. This is a vacation home in NH, so stone is way more common there than red brick. It is “the granite state” after all. The red brick seems out of place at a lake in the mountains to me.
I’m not too worried about the fireproofing requirements as this is not a DIY. We are working with a contractor and the local stove dealer, so we will definitely be following their advice. And we learned from our basement renovation there, the inspector is brutally strict! Thanks!

This is the new stove we’re considering.

It is “the granite state” after all.

Yes...but veneer stone applied to the wall in an installation like this looks fake, where at least the brick is an authentic material. If you really hate how it looks, it won't hurt to paint the brick: either you'll decide you still don't like it and rip it out, or you'll decide it looks ok and save yourself a ton of money.

I’m sorry but I don’t understand why natural stone would look fake but brick would not. The $ may be the deciding factor. But this is part of a total first floor remodel, so would hate to have everything new except for the ugly brick. Tough decision.

You said you'd "like to use some type of stone veneer product." While stone veneer, can be made of real stone, sawn to uniform thickness, it is often a man-made product: What is stone veneer?

If you look at Beverley's first photo above of applied stone veneer, you have something that from the front mimics the bulk of real stone, but then when you see how little it stands off from the wall, it's obvious that it's uniformly thin and looks fake to me (whether it's manufactured stone or real stone). Sometimes this material looks better when it is on a three dimensional surface, like the corner of a house. But when it's applied to flat, two-dimensional, interior walls, like your short corner walls, it's not aesthetically pleasing. If you had it applied to an entire wall so that you couldn't see the edges, then it would be more convincing.

Personally, I don't like 1/4" thick plywood paneling that mimics expensive wood, formica that looks like denim, brick veneer that isn't solid brick, vinyl siding that has fake grain, and ceramic flooring that has a wood look. I want my home to have real, natural materials as much as possible. That's just my prejudice. And now that I've explained why I think the real brick you have looks better than what you want to spend money to replace it with, I'll shut up. It's your house, so, If you like stone veneer, it's not my business.

Thanks kducu9, I completely understand your point. I feel the same about a lot of materials. I’ll keep that in mind as I try to figure this out. It’s the one area of the remodel that I have doubts about. We do enjoy having the stove, although, ideally I’d prefer a gas fireplace. Unfortunately I don’t think there room for one. It’s a small space. Thanks for your input!

IMO a gas fireplace would eliminate many issues you have now all be it a corner one

I'm so distracted by your precious dog.

Your chosen stove has a lot of detailing. IMO, it needs a clean backdrop. Not stone; not the brick you have. Maybe tile. (Love your pup, too!)