Termite Bonds: Does My House Need One?

When it comes to termites, it typically isn’t a matter of if termites will invade your house, but when. That’s why it is a good idea to have a termite bond in place before they are listed on the market, and buyers should have one when making a purchase, or they should get one soon after that.

What Are Termite Bonds?

A termite bond is a type of insurance against termite infestation and potential damages. They are usually issued by a pest control company that handles inspections and provides treatment for your property to eliminate these wood-eating pests.

In some cases, a termite bond can be transferred for a fee to the property’s next owner. Usually, they run between $500 and $2,500 and are based on the house’s size. This is a one-time, up-front cost. To maintain the bond, it is necessary to schedule a regular inspection, which typically costs a few hundred dollars. Any treatment or prevention solutions needed can increase the cost by a few hundred dollars per year.

Re-Treat Bonds and Re-Treat Repair Bonds

Sometimes, the damage is so minimal that homeowners decide not to repair it once the infestation is controlled. In other situations, termite damage can cost several thousand dollars to fully repair. In rare situations, homes may be demolished completely because the damage is so widespread and extensive.

There are two basic types of bonds in these situations – re-treat bonds and re-treat and repair bonds. The first option provides a guarantee for treatment when pests are discovered. The second will add the damage repair costs.

The bonds that are just for treatment may not be worthwhile. This is because they don’t cover the cost of needed repairs. It is a good idea to get several quotes from different reputable service providers. When getting these quotes, be sure to ask the following questions:

  • Are they offering a treatment and repair bond?
  • What amount of coverage is provided? (most companies cap out at around $100K)
  • How long will the bond last before it has to be renewed? (10 years is normal)
  • Is the bond transferable? If so, what is the cost to transfer it?

Letters and Inspections

Some lenders require a clear termite letter before providing a loan. This includes VA and FHA loans in most cases, but this varies from one state to another. This is not the same thing as a bond, though. The termite letter states that there was no active termite infestation at the time.

Don’t Let Termites Eat You Out of House and Home

Unfortunately, termites can be a problem for any homeowner. The fact is, they are found across the country and can cause devastating damage to any property – residential or commercial. With a termite bond, you are protecting yourself and your home. If you want to learn more about a termite bond and the benefits it offers, contact the professionals today. They can help you protect your home and your wallet from the damage that termites can do.