What is a Termite Bond, and Do You Need One?

Buying a home can be an extremely exciting process, but it can also be incredibly stressful. At the bare minimum, you want to make sure that your future home is safe and ready for you to move in. When you’re considering buying a home, one thing you can’t neglect from your list of criteria is its structural integrity — and that means diligently checking for evidence of termite activity or treatments. And believe it or not, in some cases, you actually need special inspections to verify a home is termite-free. 

In this blog, we’ll discuss the importance of wood-destroying insect inspections and termite bonds. Both are important to be aware of if you’re buying or selling a home. We’ll discuss what they are, their benefits, and why they’re important for future homeowners.

A wood-destroying insect inspection should be part of any home inspection when you’re in the buying process. It benefits all parties involved in the sale of a home, and certain types of loans, like USDA or VA home loans, require an inspection to sell or buy a property. In this inspection, a pest control professional will inspect the house for any visible signs of wood-destroying insects like termites.

After the inspection is complete, a wood-destroying insect (WDI) report will be created to share findings with all parties involved in the sale. The report will either confirm or deny the presence of wood-destroying insects like termites. If evidence of previous treatment is found, that will also be disclosed in the report.

If your WDI report confirms the presence of wood-destroying insects including termites, the next step is to secure a termite bond. A termite bond is a form of warranty or insurance policy between a homeowner and pest control company. Most structures qualify for one of two termite bond warranties:

• Retreatment warranty: This is the most common form of termite bond warranty. It provides for the home to be treated if or when a subterranean termite infestation occurs. The terms and conditions of a retreatment warranty don’t cover termite damage repairs.
• Repair warranty: This warranty form is more costly, sometimes even double the cost of a retreatment warranty. It is harder to obtain because the covered structure or home must meet certain conditions for inspection access. The terms and conditions of the repair warranty will dictate which repairs will be provided if subterranean termites are present upon further home inspections. Some providers require varying levels of deductibles for this warranty type.

It’s important to note that homeowners insurance policies don’t cover termite issues, so a termite bond is often a worthwhile investment. Even if you don’t need a termite bond, repair costs addressing termite damage can cost thousands of dollars, and a warranty can offer you some coverage and a whole lot of peace of mind.

Even if you’re tempted to take care of a termite infestation, it’s always best to leave termite infestations to the professionals who are specially trained in extermination. DIY repairs or store-bought pesticides won’t take care of the infestation at its root, wasting your money and potentially leading to more issues farther down the road. Termites are also known to hide in dark, humid areas like crawl spaces, which you probably aren’t properly equipped to explore by yourself. 

Termite bonds take a proactive approach, with pest control professionals monitoring your property for any signs of infestation. Termites often aren’t found until an infestation has begun and damage is visible. Once an infestation starts to grow, it can tear up your property from the foundation of a home, so it’s important to keep a close eye on things. 

Having a termite bond could also help you save money in the long run. Instead of paying per visit for a pest control company to survey your area or paying per termite treatment, you pay upfront, typically monthly or quarterly. Having a termite bond in place can save you hundreds or thousands of dollars on repairs or extermination down the road.