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What is a Termite Bond?

Mary McMahon
By
Updated: May 16, 2024

A termite bond is a contract between a pest management company and a homeowner which provides a form of insurance which is effective after a pest inspection and treatment. With a termite bond, treatments for recurrence of termites are free for the life of the bond. Not all pest management companies offer these bonds, and the terms of the bond can vary, but they can be very useful for homeowners, especially if people believe that they will be staying in their home for at least five years.

Also known as a termite contract, a termite bond states that if termites recur during the life of the bond, the pest management company will treat them for free. The bond also usually includes an annual inspection for termites, for which the customer may have to pay. Some bonds include extra features like damage compensation, so that if a house incurs damage as a result of returning termites, the pest management company will pay for repairs and replacements.

The cost of a termite bond can vary, but it is usually structured in a way which makes it affordable for homeowners while being cost-effective for pest control companies. When offered a bond, people may want to contrast the price of the bond with the price for a pest inspection and extermination treatment. If the cost of a bond adds up to one such session over the course of 10 years, the bond is probably worth it, as it may very well pay for itself.

When reviewing the terms of a termite bond, homeowners should find out which termite species are covered, how long the life of the bond is, and whether or not the bond is transferable. Transferable bonds are useful so that in the event that a structure is sold, the new owner has the option of continuing to carry the bond. If the bond is transferable, it may be important to know whether or not the property must be inspected before a transfer takes place, and if there will be fees associated with transfer.

Finally, when considering a termite bond, homeowners should ask about what will happen if a pest management company goes out of business or moves. A reputable termite control company will make arrangements to transfer its bonds to another company so that customers experience continuity of service and assurance. A company which does not have such a plan in place may not honor the termite bond, which could be problematic if a homeowner requires an extermination.

HomeQuestionsAnswered is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a HomeQuestionsAnswered researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments
By anon294189 — On Sep 30, 2012

I pay $110 each year for the inspection. The bond was ending after five years and they asked me for $975 to treat the property again. My house is 1300 sq feet. Have they ripped me off? My neighbor said they have, but he doesn't have a bond on his.

By MissDaphne — On Aug 02, 2011

@robbie21 - You're so right. I once ought a house in south Georgia, where termites can be a big problem and pretty much any house over ten years old has repaired termite damage. I would never have considered buying a house without a termite bond. The previous owners transfer the termite bond to the new owners.

It's not just the convenience of assuming the contract. It shows that you've been taking care of the property and being responsible. Kind of like how you wouldn't buy a car from someone who didn't have the oil changed. If they're not doing that, who knows what else they're not doing.

By robbie21 — On Aug 01, 2011

A termite bond might be worthwhile even if you don't plan to stay in the house very long. If you live in an area where termites are common, having a termite bond is a nice selling point on your house.

If you do think you might move, make sure that the termite bond would be transferable to a new owner and find out whether there's a fee for it. Ideally, then when you move, the new owner would take over the payment to the pest control company and there would be no interruption in coverage.

Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

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