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Termites are small, but they can cause a lot of damage. Every year, Americans spend an estimated $5 billion on termite control and damage. If you’re wondering how to get insurance that covers termite damage, we’re here to warn you that you’ll probably be disappointed. Home insurance doesn’t usually cover termites, but there are exceptions. Bankrate’s insurance editorial team, which also includes qualified insurance agents, explains the ins and outs of termites and insurance, and offers some tips on how to keep these pests at bay.
Does homeowners insurance cover termite damage?
Termite damage is likely not covered by home insurance. Insect, pest and rodent problems are generally considered preventable by home insurance companies, and homeowners are expected to take proactive steps to prevent infestations. Failing to do so may result in the insurer classifying the damage as the result of negligence.
Some insurance policies state that insect damage is not covered, while others don’t mention insects at all. If your policy doesn’t mention insect damage, it’s highly unlikely that it will cover a termite-related claim. To be on the safe side, read your home insurance policy carefully to see if it mentions termites or insect damage.
Personal property damaged by termites is also not covered by home insurance, and even if your insurance does cover termite damage, depending on the policy, it may only cover damage to the physical structure of the home and any outbuildings.
read more: What does homeowners insurance cover?
When does homeowners insurance cover termite damage?
It’s very rare for home insurance to cover termite damage. Generally, there are only two situations where your home insurance may be able to cover the cost:
- If termite infestation creates an insurable risk: If your home is infested with termites, and the termites chew through the wiring and start a fire, your home insurance may be able to cover some of the damage caused by the fire. The amount of coverage depends on what the insurance adjuster determines to be the direct cause of the damage.
- If your house collapses due to termite damage: If a homeowner is unaware of a termite infestation and their home is completely destroyed by termite damage, their home insurance may pay for the rebuild costs. However, if the homeowner was aware of the termites’ presence, the insurance company may deny the claim.
What to do if termite damage is not covered by insurance
Unfortunately, most home insurance companies don’t sell termite insurance, so if your home has termite damage that isn’t covered by your homeowners insurance, an exterminator will need to assess the situation, recommend the best way to fix the problem, and provide you with a cost estimate.
Before choosing a pest control company, it’s a good idea to get visits and quotes from several professionals. You’ll likely have to pay for the service out of pocket, so look for a company that offers fair prices and has good customer reviews. Ask how long the extermination job will take and when the company can inspect the interior damage.
Once you have eradicated the termites themselves, the next step is to have a professional assess the damage to your home. Consider getting multiple opinions on what repairs are needed and how much they will cost. A qualified professional should be able to deal with a termite infestation and recommend repairs.
How to Repair Termite Damage
While home insurance will most likely not cover termites, you can take steps to repair any termite damage that has occurred in your home. If you find damaged wood, there are generally a few ways to repair it. If the wood is structurally intact and only minimally stressed, you can replace the entire piece of wood. There are also cheaper options, such as using products like steel framing that can be drilled and bolted to the undamaged wood. This provides more structural support than the damaged wood alone can provide, and is generally less costly than replacing the entire piece of wood.
Repairs that require the replacement of structural supports are more complex, and many homeowners may choose to hire an experienced contractor to complete these repairs. In that case, it is useful to get quotes from several local contractors before selecting a contractor to perform the repairs. In some cases, quotes from contractors can vary widely, and by comparing the best and most affordable option, you may be able to save money on repairs.
To prevent future termite damage, it’s a good idea to have the damaged wood treated for termites before you begin repairs; otherwise, you may still have a termite problem after repairs are complete. If the termite damage is limited to a small area, you can use commercial spray options, or if the damage is more widespread, you can hire a professional to fumigate your home. Either option, when done in conjunction with adding or replacing damaged wood, can help prevent further termite damage to your home.
What are termite guarantees and warranties?
Traditional home insurance policies generally don’t cover termite damage, but there are other options to consider, such as termite warranties and guarantees. These contracts with pest control companies can help prevent pests and give you peace of mind.
A termite bond is a type of contract that guarantees termite prevention measures and is usually offered by home builders or individuals or organizations that deal with termite control. It is designed to cover the costs of termite control and damage repair. Termite bonds are more popular in areas where termite infestations are common. In fact, lenders often require a deposit before finalizing a home purchase. However, the cost can vary depending on the bond provider, your location, and the length of the guarantee.
A termite warranty, on the other hand, is essentially a contract that a homeowner can secure for financial protection against termite damage. Since most home insurance policies do not cover such damage, a termite warranty acts as a safety net, covering potential damage as well as ongoing monitoring and maintenance. The warranty obligates the pest control company to treat the home for termites if termites are found during an annual inspection within the warranty period. The warranty can also specify whether the company will repair termite damage. Of note, some termite warranties are transferable between homeowners, while others are not.
How to detect termite damage
Spotting termite activity early is crucial in preventing major damage. For example, your home may start to give off an earthy or moldy smell. While it’s hard to actually see termites with the naked eye, there are signs that can help you determine what type of termite you have, such as drywood termites, wetwood termites, or subterranean termites. These include:
- Soft wood: Dampwood termites love damp places and tend to seal their nests to keep moisture in. It’s important to check for potential damp habitats around your foundation, such as near leaky gutters or around overgrown bushes.
- Swelling of wood, floors, ceilings and walls: If termites are hiding in the wood of your home, you may notice these signs that indicate their presence: Termite damage to wood, floors, ceilings, and walls can often look a lot like water damage.
- Mud pipe: Look for tunnel-like passageways in the foundations and walls under the floors. Mud tunnels are usually a telltale sign of the presence of subterranean termites.
- Flock: Finding wings or missing parts indoors is a sure sign of a termite infestation. Finding wings or missing parts, especially near doors and windows, could be a sign that a termite problem has been worsening for several years.
- Shit and holes: If you notice pinholes in your walls and piles of debris nearby, you may have a drywood termite problem.
How to prevent termites
Termite infestations are often preventable. Termites enter homes through cracks, gaps in the foundation, loose pipes, drains, etc. Termites are attracted to moist environments and are usually active during the spring and summer.
There are several preventative measures you can take to protect your home’s structure and your belongings from termite damage. While you can’t always stop termites from attacking your home, you can take steps to prevent them from causing serious damage throughout your home. For example, you can:
- Eliminates food sources for termites. Termites feed on the cellulose found in firewood, plants, mulch and other woody materials, so if possible, keep those items away from the sides of your home where termites can easily gain entry.
- Seal entry points to prevent termites from entering. Check your home’s foundation for small cracks or holes. Seal any gaps around water or gas pipes that run outside your home. Check for leaks in pipes or trenches that could cause water to pool around your foundation.
- Schedule a termite inspection annually. This is an important step for all homeowners. Annual inspections can help catch termite infestations early and prevent further damage. Consider having a professional exterminator inspect your home for termite infestations once a year and follow their instructions to keep termites out of your home.
If you have termites in your home, there are a number of ways to get rid of them. Certain insecticides are effective against termites, but because they can cause damage relatively quickly, your best bet is to contact a professional exterminator.
