Answers

yes I would be concerned about the egress issue (or the ways in which you can exit the home).  I would always check with the building department. 

Philip

HDR Remodeling

Berkeley Ca

You need to consult the local building and zoning department.  Changing means of egress may not be allowed or may require a permit.

They would have to remove the door, tie in with new framing, insulate properly then drywall the area. No permits are required as long as the structure of the home is not affected. door frame is been engineered to support existing load so just cover in a correct maner and you will be fine.