Termite Insurance Coverage

Soldier Termite
Photo by Creative Commons LicenseMatt Johnson

Termite insurance is required for certain parts of the United States, Australia and around the world which are at high risk from termite infestations. For many people it is a confusing topic, so this article will address the following questions:

What is termite insurance coverage?

Termite insurance is a form of insurance that home owners can pay for that covers them if any termite inspections or treatments are required. It is usually signed up for on a fixed term basis ranging from 6 months up to several years. Termite insurance tends to be offered by pest control companies and isn’t usually given under traditional home insurance schemes.

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What is the difference between termite insurance and a termite bond?

Basically, when someone is talking about termite insurance they are also referring to termite bonds – so in most cases it usually means the same thing. However, some people distinguish between the two, they refer to termite insurance as that which is offered by an insurance company whilst they consider termite bonds as that which is offered by a pest control company. This is quite rare though, so for the purposes of this article we will consider termite insurance to be termite bonds which are offered by pest control companies.

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How much is termite insurance likely to cost?

The price for termite insurance is usually a couple of hundred dollars each year. This can vary depending on the type of insurance you have signed up for. The better and more extensive the insurance is, the more it is likely to cost you. However, if you are going to be living in the same area for several years then you should be able to save some money. Termite insurance tends to be offered at a higher discount if you sign up for a longer term.

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Can I just sign up for termite insurance or is something else required?

If you are signing up for new termite insurance then normally a pest control company will give your house a full inspection before they will take you on as a customer. This is so they don’t get customers signing up who already have pre-existing termite infestations, who then suddenly claim that they didn’t know about the infestation and so they should get treatments for free. Termite inspections are simple procedures that normally take less than an hour and will provide you with a report detailing the results found.

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Does homeowners insurance cover termite damage?

Usually, with termite insurance you’ll have the right to free annual inspections and treatments if any termite infestations should occur. Depending on the contract, you might also be given free protection and prevention equipment such as a termite baiting system. Damage to the home is sometimes covered but often you’ll have to pay for any repairs out of your own pocket. Check the small print of your contracts for details.

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Is there anything else I should look out for in the contract?

Yes. When signing up for termite insurance try to get some insurance that provides you with transferable insurance or a transferable bond. Transferable insurance means that should you decide to sell your property, then this form of insurance can be passed onto the new home owner. It is an important thing to have because many prospective buyers will want to know the history of the house to ensure that is free from any infestations. So by having transferable termite insurance you’ll be making your home more attractive to potential buyers.

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Where is the best and cheapest place to buy termite insurance?

Termite insurance can be bought online, just search for the keywords ‘termite bond (Florida)’ or ‘termite insurance (Florida)’ changing the word (Florida) to the location at which you’re currently living. Also have a search on price comparison websites and look in your local newspapers and directories. Check that the pest control company is fully licensed and has a history of happy customer reviews before you sign up.

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