I have paneling in my small 1/2 bathroom, and i'm looking to drywall over the paneling. My only problem is that I have baseboard hot-water heaters. From how I'm judging the new drywall is going to rest on the top of the baseboard heater. Is this a safety hazard, or would it be better to raise the drywall off of the heater and put a piece of decorative base molding between the drywall and heater.

Of course the other option is to tear down all the paneling and just replace it with drywall, but I'm not sure if that is an option right now.

Any help is appreciated, thanks in advance!

Running drywall to the top of the baseboard gives it a sleek , built in look . The only drawback is that it makes it real hard to replace , and in a moist environment like a bathroom , accessibility is optimal . Some baseboard manufacturers make a special coated brand just for this situation . I would suggest changing the basebaord to this style before the drywall goes up .