What Is a Termite Bond?
A termite bond is a warranty between you and a termite company, a little like a maintenance contract. It typically includes two important parts:
- An agreement for termite inspections as long as the contract lasts (typically a couple of years). These inspections can happen annually or quarterly, or on an agreed-upon schedule.
- An agreement to provide treatment and control if termites are discovered. These services are usually covered by a bond, so the homeowner doesn't have to pay any extra. Many bonds include upfront service, prior to inspections, to take care of termite issues that were just discovered.
- Repair of damages or retreatment only. An agreement should specify if the service provider will retreat and repair any damage from a subsequent infestation or just retreat the structure without providing damage repairs. Not all homes qualify for a Repair Bond, so it is recommended that you inquire about the eligibility and costs associated.
Note: A bond is different from a "termite letter," which is a statement that a house is or is not found free of termites upon inspection.
What Are They Used For?
A termite bond delivers peace of mind. If you have a termite infestation, you may worry that termites will return, even after successful control services. But a bond guarantees that the pest control company will keep an eye on your home and make sure that a new infestation doesn't creep up on you.
Termite bonds also serve an important purpose when buying or selling a home. If a home inspector finds a termite problem or a high likelihood of termites, buyers will often only agree to purchase the house if the owners take out a termite bond first. Likewise, lenders may not be willing to provide a mortgage for at-risk homes without a bond. Certain loans, like FHA and VA mortgages, specifically require pest inspections, so termite bonds can help homebuyers qualify for those lower-cost loans as well.
Who Provides Termite Bonds?
Only certified pest control companies can issue a bond. Some home inspectors work with eligible pest control companies and can connect homeowners or homebuyers with a reputable service provider.
When Do I Need One?
We don't suggest waiting until a home inspection to find out if you need a termite bond or not. The discovery can delay seller plans at a crucial time during the transaction. Instead, if you are thinking about selling your home, or if you recently found a termite infestation and are worried about it returning, it's a good idea to plan for a bond.
How Much Do They Cost?
Termite bond prices are determined by how long the bond lasts and what services are included, as well as additional factors.
A common cost range for a residential home is $700 to $1,000 for the initial service, but prices can fall lower for simpler arrangements. Yearly costs typically run $300-$400 for the warranty coverage, which includes an annual inspection as needed.
Is There Anything Else I Should Know?
Termite bonds are either transferable or nontransferable. A transferable bond can be transferred to a new homeowner upon the sale of a home. As you might imagine, it's important that you get a transferable bond whenever possible.