Does Insurance Cover Termite Damage? How Termite Damage Insurance Claims Work

A standard homeowners insurance policy will not typically cover termite damage repair. Instead, most homeowners need to pay for termite removal – and termite damage repairs – out of pocket.

Today, we’re explaining everything you need to know about how insurance covers termite damage.

Standard Homeowners Insurance Doesn’t Cover Termite Damage

If termites have damaged your home, then your insurance will not generally cover the cost of removing termites or repairing damage caused by termites.

In fact, most insurance policies specifically exclude any damage caused by biological organisms like rodents, insects, and pests.

Why doesn’t insurance cover termites? Termites are considered a preventable problem. Insurance is designed to cover sudden and unexpected events – like a burst pipe or house fire. It’s not designed to cover expected parts of home ownership – like maintaining the property and defending against pests.

How to Prevent Termites

Termites are preventable.

With proper precautions, you can prevent termites from taking over your property.

Some of the best ways to prevent termites include:

• Avoid moisture accumulation around your home and the foundation
• Order a pest inspection or sign up for a termite bond
• Avoid stacking firewood against your home
• Keep plants, mulch, and bushes two to three feet away from your home
• Learn to spot termite damage, then check the foundation around your home regularly for termite damage
• Be extra wary when winter weather turns warmer, as this is when termites tend to be most active

How Much Does Termite Treatment Cost?

A whole-home termite treatment can cost anywhere from $300 to $2,000.

The cost of repairing termite damage, however, can be much higher. Termites can cause immense damage in a short period.

A termite infestation, when left untreated, can impact the structural integrity of your home. Termites can eat away at the studs and flooring of your home’s structure.

Termites can even get into an attic and attack the trusses holding up your roof. They can cause serious, structure-threatening damage.

Fortunately, all of this damage is avoidable with proper preventative measures. By learning to spot a termite infestation early, you could reduce the impacts of a termite infestation.

How to Buy “Termite Insurance”

You can’t generally buy “termite insurance” through a homeowners insurance company.

Most homeowners insurance companies don’t sell termite insurance or “termite repair coverage.” You can’t add it to your policy as an endorsement.

However, you can buy something similar to termite insurance called a termite bond. Here’s how a termite bond works:

1. Schedule a termite inspection with a licensed termite inspector in your area.
2. Following a termite inspection, the termite inspector can decide whether or not termite treatment is needed for your property.
3. With or without treatment, the termite inspection company can place your home under a termite bond.
4. Typically, the termite bond involves enacting protective measures around your home – like digging a trench around your home’s foundation, treating existing infestations, and placing bait stations.
5. Once the termite company has removed any signs of existing termite infestations, they can place your home under a bond, protecting your property from future termite damage.
6. If termite damage occurs while your home is under a termite bond, the termite company will cover the cost of repairing that damage.

A termite bond can cost anywhere from $75 to $250 per year. It’s a legal document protecting your home against termite damage. If termite damage occurs to your home while it’s under a bond, the termite company covers the cost of repairing that damage.

Termite bonds, like insurance policies, have a fixed limit. A termite bond might cover a maximum of $500,000 worth of damage to your property, for example.

A termite bond also typically involves regular inspections. The termite company may inspect your property once or twice per year, for example, to verify the property is free of termite damage.

Ultimately, a termite bond isn’t technically an insurance product. However, it’s a way to protect your home from termite damage while getting peace of mind – similar to how termite insurance would work.

Signs of Termite Damage

Termite damage can be tough to spot – especially if you don’t know what to look for.

Signs of termite damage include:

• Cracks and tunnels in your home’s foundation
• Termite mud tubes (1/4” to 1” tubes in your concrete foundation)
• Termite droppings, including unexplained droppings, pellets, or wood shavings
• Blisters, buckling, or other visible damage in wood flooring
• Weak walls, weak studs, and hollow-sounding wood
• Squeaking floors or walls or hard-to-open doors and windows

If you notice any signs of termite damage, it’s important to contact a professional pest removal company. Termites don’t go away on their own. They continue feeding on your home until no food is left. They could start at the hardwood floors, for example, before climbing up studs into the attic and trusses, ultimately destroying your home within one to two years.

When to Make an Insurance Claim for Termite Damage

Homeowners insurance doesn’t cover termite damage. However, there are some situations where insurance covers damage linked to termites.

Some of the situations where you may want to make an insurance claim for termite damage include:

• Water Damage: Termites love water-damaged wood. Water damage, when left untreated in a termite-prone region, can often lead to termite damage. Insurance generally covers water damage (but not flood damage). Contact your insurer to make a water damage insurance claim – especially if the water damage was caused by a burst pipe or from water inside the home (instead of rising floodwaters from outside the home).
• Home Collapses: If your home suddenly collapses because of termite damage, you may be able to make a homeowners insurance claim. As long as you can prove there were no visible signs of termite damage, you could receive a total loss payout from your insurer, compensating you for the loss of your home.
• A Completely Hidden Termite Infestation: Did termites damage your home with no visible signs? If you did everything right – including proper home maintenance and preventative measures – and were still impacted by termites, then you may be able to make an insurance claim. Again, you may need to prove termite damage was completely hidden.

Final Word

Termites can do serious damage to your home in a short period of time.

A standard homeowners insurance policy excludes pest and animal damage.

Pest and animal damage – including termite damage – is preventable. As a homeowner, you have an obligation to maintain your home, which includes protecting it from termites or catching infestations early.

Although you can’t technically buy termite insurance, you can buy termite bonds. A termite bond protects your home against future termite damage.

For help managing termite claims, contact ClaimsMate today.

ClaimsMate’s public adjusters represent your best interests while navigating tricky insurance claims, helping you receive the payout you paid for.

Stephanie Corona

Stephanie is a property insurance claim expert with over 20 years of experience working as an insurance adjuster, expert witness, appraiser and umpire. She is passionate about sharing her expertise, knowledge, tips and training to help both property owners and Public Adjusters in their pursuit of effectively managing claims and recovering the claim settlement they deserve after a loss.