Termites are one of the most destructive forces of nature in the United States, rivaling hurricanes. But homeowner’s insurance policies do not cover termite damage. So, what’s a homeowner or home buyer supposed to do to protect themself? That’s where a termite bond comes in.

Essentially, a termite bond is a contract between a pest control company and a homeowner in which the company provides various termite treatment or prevention services for an annual fee. The terms of the bond will vary from situation to situation, but they all work to protect you from infestations.

What Does a Termite Bond Entail?

Termite bonds vary between companies, but in general, you will receive the following services:

• Initial termite prevention treatment with termiticides 
• Annual termite inspection to make sure there are no new signs of termites
• If there are signs of termites, treatment is occasionally at no additional cost
• Some bonds even cover repair costs of your house if damaged by termites after treatment

What’s the Difference Between a Termite Bond and a Termite Letter?

Make sure you understand whether you’re getting a termite bond or a termite letter. Both may be used during the real estate process, and both can be very valuable in certain situations, but it’s important to know which one you’re getting.

• Termite letter – When a pest control company performs an inspection and gives you a write-up outlining what was found, this is not a bond. It is simply a report of findings, also sometimes called a “termite letter” or “real estate letter.” 
• Termite bond – A termite bond is a promise. Not only does it report the findings of a termite inspection, it outlines what pest measures were taken to control any termites found, and what measures will be taken in the future if termites are found during the period of the bond. You can think of it sort of like termite insurance.

How Much Does a Termite Bond Cost?

The cost of a termite bond varies depending on the termite control company and the extent of services provided within the bond. In some cases, there may be more costs involved in getting treatments that go beyond dealing with an active infestation and provide continual protection from termite invasion. However, it’s important to remember that the annual cost of the bond is most likely a fraction of termite treatment should you get an infestation!

Should the Buyer or Seller Pay for the Termite Bond?

While it is most often the responsibility of a buyer to get a termite letter, it is the responsibility of the seller to pay for treatment and damages if termites are found.

If you’re selling your home, it is advantageous to beat the buyer to the punch. When you acquire a termite letter first, you can in some cases pass the cost of any treatment or damage found to the buyer by adding the costs to your asking price. Whereas if the buyer has the home inspected, you’ll be left holding the bill.

Getting a termite letter is also a helpful step in making your home ready for sale. While the buyer is focusing on getting a pre-approved loan amount, you can make sure that everything is set on your end for a quick and convenient transfer of ownership.

At Active Pest Control, we offer termite letters, and real estate inspections. Call us today to schedule your appointment.

Tips for Buying Termite Bonds

• Make sure the termite bond is attached to the home, not the homeowner. If you own a home and you want to increase the value of your home at the point of sale, it is important to be able to transfer this “termite insurance” to the new owner.
• Find out when the bond expires. If you are buying a home, it is important to know when the bond needs to be renewed. It is usually a simple matter to renew a bond and keep the retreatment and repair guarantee in place.