I have a 1200 sf 1958 Florida home with an older fuse panel located inside a bedroom closet, serving the entire home, including the kitchen oven, range, water heater, etc. I also have a circuit breaker equipted panel, located outside the home, immediately beside the meter, serviing the AC unit, Air handler and electric dryer in the garage. I have a 200 Amp meter and service coming into the home. I am adding a bedroom and bath the home and want to install a new 200 Amp service panel in the inside bedroom closet in the place of the fuse panel. Can this be done? I have been told the preferred location is in the garage or on the outside wall of the home - this will necessitate much rewiring as the service masthead can only be on the opposite side of the home from the garage. The bedroom with the fuse panel is on the opposite side of the home from the garage, very near the meter and masthead.

According to the National Electric Code, panelboards are not allowed in closets.

They may have been allowed at the time of construction of your home. This could probably remain as is if you don't do any upgrade.

However, you may need to relocate the panel as upgrading the panel will require a panel change.

Best I can offer is to consult with your local electrical inspector to see what he will require to be done.

Possible solution for you... Your old panel becomes a pony panel and the new service and main panel go where ever the inspector wants it. Pony panels are subject to a laxer set of standards.

I find no reference to "pony" panels in the NEC.