Termite Damage Insurance

termite damage insuranceIf your home was infested with termites, would you be prepared to deal with it? Most people think that their home owner’s insurance will cover eradicating a termite infestation or the subsequent damage inflicted, but that is not necessarily the case. If you have had problems with termites in the past, there is a special kind of coverage you can get called a termite bond, which involves contracting a pest control agency. The cost of termite bonds varies, but they can be quite beneficial.

Does Homeowner’s Insurance Cover Termites?

The short answer is no. It comes as a shock for most people, but your homeowner’s insurance does NOT cover termite damage. Don’t worry, you’re not the only person who didn’t know. According to a survey by the National Association of Insurance Commissioners, 31% of people think that standard homeowner’s insurance covers termite damage. Although homeowner’s insurance may cover damage that is the result of a termite infestation it will not cover dealing with the infestation or anything related to the termites themselves.
Insurance companies view a termite infestation as a symptom of neglect and a failure to properly maintain your home, and thus do not cover termites under homeowner’s insurance. Anything that is part of a gradual decay, like mold, rodent damage, or rust, is something that an insurance company will typically deny a claim for.

What Insurance is Available for Termite Damage?

But if homeowner’s insurance doesn’t cover termites, what does? The answer is termite bonds. A termite bond—sometimes called termite damage insurance—is a contract that a homeowner enters into with a pest control business. The business then agrees to perform regular inspections of your property for termites and possibly also to deal with the damage from a termite infestation. When you have a termite bond with a company, the company is then the one that takes care of the costs associated with the problem, much like an insurance provider would.
If you live in an area prone to termite infestations, the opportunity to purchase a termite bond will likely be extended to you at some point in the home buying process. This often happens during home inspections or immediately after purchase. Pest control companies will probably also suggest a termite bond if they come out to treat an existing infestation.
termite damageTermite bonds, just like insurance policies, vary in their coverage of issues. The pest control company may only be willing to guarantee coverage for certain species of termites. If this is the case, be sure to research which species are prevalent in your area to ensure that you are being covered for what you are reasonably at risk for.
The bond will stipulate intervals for regular inspections. Many termite bonds offer an annual inspection, but in high risk areas, a quarterly inspection may also be offered. Your termite bond should also explain what is included and excluded in terms of treatment and service. Will the bond holder charge fees for extra inspections or treatments? Do they cover the cost of damage incurred by termite infestations? Read your policy carefully to ensure that you receive the coverage you need.

The Cost of Coverage for Termite Damage

The cost of termite damage insurance covers a wide range because, like any other insurance policy, there are many factors that determine the price. The biggest issue in calculating the cost of a termite bond is location. Some areas of the country, especially the South, have a much higher incidence of termite infestations than others. Naturally, if you live in a high risk area, your policy will cost more.
The other factors of a price of a termite bond have to do with the level of service you expect to receive. Having quarterly inspections costs more than annual inspections. If the bond stipulates that damage will be covered, then you can expect it to cost more.
In terms of hard numbers, the average price for a termite bond runs from around $800 to $1000 yearly. National chains may offer better deals for some types of coverage. For example, Terminex advertises a low price offer of $35 per month. Of course, your cost may vary. It is worthwhile to check with local pest control services as they may be more familiar with local considerations than the national chains.

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