Termite Bond

Photo by Creative Commons LicenseJames Niland
If you’re living in an area that is at high risk to termite infestations then it is a good idea to sign up for a termite bond, which is a type of insurance that is usually offered by pest control companies. You may be thinking – I already have home insurance, what is a termite bond? Why would I need termite insurance?

Well here’s the thing – home insurance often doesn’t cover termites or pests. See the insurance companies are smart, they know that pest control fees can run into the thousands, especially if you live in an area such as Atlanta, Georgia or Alabama which frequently has termite problems. So whilst home insurance might cover you for burglaries or fires, if you look at the fine print you’ll probably see some small statement that gives the company a get out clause, stating that termites are not covered because they are considered a “home maintenance issue”.

But don’t worry because you can still sign up for insurance, it’s just that you’ll have to pay some fees to a pest control company instead of an insurance company. These fees will pay for a contract which will provide you with termite control for your property for a period of a year or more. However, each contract is unique and the better the coverage, the more you’re going to have to pay.

When you sign up for a termite bond or termite insurance you will most likely have to have a termite inspection before the contract is fully signed. This is so the pest control company can make sure that they will not be insuring a house that already has a pre-existing termite problem. If termites are found during the inspection, then these will have to be treated and paid for separately before the termite bond can be fully signed.

Termite Bond Cost Options: Finding a Real Deal

If you sign up for a long term contract then the rates for this bond should be discounted the longer you sign up for the service. So if you’re thinking of living in the area for 5 years or more then you can save some money on these contracts. But you also want to be looking at other parts of the contract, questions you might want to consider are:

  • Do you get free annual inspections?
  • What treatments options does the company provide?
  • What type of termites are covered?
  • Are any other species such as cockroaches included?
  • How long is the response time?
  • Is the termite bond transferable?

Finally, remember to sign up for a transferable termite bond. What this means is that if you decide to sell your home, then the bond can be transferred onto the new owners. On the otherhand, if you’re looking to buy a home in an area that is at high risk of termites, then try to sign up to homes which already have a transferable bond. The reason for this is because it will give you a better idea of the history of the homes termite problems. This will indicate what you’re likely to face in the future, as well as the prices you’ll have to pay.