Does homeowners insurance cover termites?

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Even though they’re tiny, termites can cause some outsized damage. Each year, Americans spend an estimated $5 billion on termite control and damage. If you’re wondering how to get insurance to cover termite damage, be warned that you’re probably going to be disappointed. Typically, home insurance does not cover termites, but there are some exceptions. Bankrate’s insurance editorial team, which includes licensed insurance agents, explains the particulars of termites and insurance and offers some tips on how to keep these pests at bay.

Will homeowners insurance cover termite damage?

Termite damage is unlikely to be covered by homeowners insurance. Bug, pest and rodent problems are usually considered preventable by your home insurance provider, and homeowners are expected to take proactive measures to avoid infestations. If you fail to do so, the insurer is likely to categorize the damage as a result of neglect.

Some policies may explicitly mention that insect damage is not covered, while others may not mention insects at all. If insect damage is not mentioned in your policy, then it’s very unlikely that any kind of termite-related claim will be covered. To be sure, read your home insurance policy carefully to see if termites or insect damage are mentioned.

Personal property that is damaged by termites is not covered by homeowners insurance either. If your insurance does end up covering the termite damage, it will likely only cover damage to the physical structure of the home and attached structures, depending on the policy’s terms.

Read more: What does homeowners insurance cover?

When homeowners insurance covers termite damage

It is extremely uncommon that your home insurance will cover termite damage. There are generally only two situations when homeowners insurance might help cover the cost:

• When the termite infestation causes a covered peril: If your home is infested with termites and those termites chew through wiring that sparks a fire, your home insurance may help cover some of the fire-related damage. Coverage will likely depend on what the insurance adjuster determines is the proximate cause of the loss.
• When the house collapses due to termite damage: If a homeowner is unaware of a termite infestation and the termite damage causes the home to collapse completely, home insurance may pay for the rebuilding. However, if the homeowner was aware of the presence of termites, the carrier will likely deny the claim.

What to do when you have termite damage not covered by insurance

Unfortunately, most home insurance companies do not sell termite insurance policies. If the home has termite damage that is not covered by homeowners insurance, an exterminator will need to assess the situation, recommend the best way to solve the problem and provide a cost estimate.

Before choosing an exterminator, you may want to have several professionals visit and provide quotes. The service cost will very likely be out of pocket, so look for a company that offers fair prices and has good customer reviews. Ask how long the extermination process will take and when a contractor can survey the interior damage.

Once the termites themselves have been taken care of, the next step is to have a contractor evaluate the damage to the home. You may consider getting several opinions about the repairs that need to be made and their cost. A licensed contractor should be able to address a termite infestation and recommend repairs.

How to repair termite damage

While home insurance does not cover termites in most cases, you can take steps to repair termite damage that has occurred to your home. As you find damaged wood, you generally have a couple of options to fix it. You can replace the entire piece of wood if it’s non-structural and prone to minimal stress. You may also have a less expensive option with products such as steel frames, which can be drilled into place and bolted to undamaged wood. This provides more structural support than the damaged wood alone could provide and generally costs less than replacing an entire piece of wood.

Repairs that require replacing structural supports are more complicated, and many homeowners may choose to hire an experienced contractor to complete these repairs. If that’s the case, you might benefit from getting estimates from several local contractors before choosing one to make repairs. In some cases, the estimates from the contractors can vary greatly, and shopping around for the best and most affordable option may help you save money on repairs.

To avoid future infestations, you may want to treat any damaged wood for termites before you start repairs. Otherwise, you may still end up with termite issues after the repairs are complete. If your termite damage is confined to a small area, there are over-the-counter spray options available, or if there are more widespread issues, you can hire a professional to fumigate your home. Either option, along with adding or replacing damaged wood, should help to prevent further termite damage to your home.

What are termite bonds and warranties?

While traditional home insurance typically does not cover termite damage, there are other options to consider, such as termite bonds and warranties. These contracts with pest control companies can help with pest prevention and provide peace of mind.

A termite bond is a type of agreement you can buy that guarantees termite prevention measures, typically provided by a home builder, individual or organization that handles termite control. It’s designed to help cover the cost of termite management and any damage repair. Termite bonds are more popular in areas where termite infestations are common. In fact, before you can finalize the purchase of a house, lenders often require them. The cost can fluctuate, though, based on who’s providing the bond, where you are and how long the coverage lasts.

On the other hand, a termite warranty is essentially a contract that homeowners can secure for financial protection against termite damage. Since most home insurance policies don’t cover such damage, a termite warranty acts as a safety net, providing coverage for potential damage and ongoing surveillance or maintenance. This warranty ensures that the pest control company is obligated to treat your home for termites if found during an annual check-up within the warranty period. The warranty may also specify whether the company will repair termite damage. Notably, some termite warranties can be passed from one homeowner to another, while others cannot.

How to detect termite damage

Early detection of termite activity is crucial in preventing significant damage. Your home may begin to give off loamy or mildew-like smells, for example. Though termites are difficult to actually see with the naked eye, there are signs to look for that can help you determine the type of termites you have, whether drywood, dampwood or subterranean termites. These include:

• Soft wood: Because dampwood termites like moist spaces, they tend to seal up their nests in order to preserve humidity.  It is important to look at potential damp habitats around foundations, such as near leaking gutters or around overgrown bushes.
• Blistered wood, bulging floors, ceilings or walls: If termites are embedded in your home’s wood, you may notice these signs of their presence. Termite damage to wood, floors, ceilings or walls may closely resemble water damage.
• Mud tubes: Look for tunnel-like pathways on foundations and crawl-space walls. Mud tunnels are usually a telltale sign of subterranean termites.
• Swarms: Seeing winged termites or wing sheddings indoors is a clear sign of infestation. Spotting winged termites or wing sheddings (especially near doors and windows) may indicate that a termite problem has been festering for several years.
• Droppings and holes: If you notice pinholes in walls with debris piles nearby, it could mean that you have a drywood termite problem.

How to prevent termites

Termite infestations are often preventable. Termites can enter homes through foundation cracks, crevices, loose pipes and gutters. They are attracted to humid and moist environments and are usually more active in the spring and summer months.

There are several ways to take precautions that would safeguard the structure of your home and protect your belongings from termite damage. While you cannot always stop termites from attacking your property, you can take steps to try and prevent serious damage across your home, including:

1. Eliminate termite food sources. Termites eat cellulose, which can be found in firewood, plants, mulch and other woody materials. If possible, keep those things away from the sides of your home where termites can easily get in.
2. Seal entry points to keep termites out. Check the home’s foundation for small cracks and holes. Seal gaps around any water and gas lines that run outside the home. Look for leaky pipes or gutters that can cause water to pool around the foundation.
3. Schedule annual termite inspections. This is an important step for all homeowners. An annual inspection can catch an infestation early and prevent further damage. Consider having a professional exterminator check the home for termites once per year and following their guidance on keeping termites away from the house.

If you have termites in your home, there are ways to treat the infestation. Certain pesticides are effective against termites, but because these bugs can cause damage relatively quickly, your best bet may be contacting a professional exterminator.

Frequently asked questions

• What is the best home insurance company?

  Since homeowners insurance is such a personal product, the best home insurance company varies. What you look for in an insurance provider might be different than what your neighbor values. For instance, if you’re on a tight budget, the best company for you might be the one writing the most affordable policy, or if you prioritize customer service, you might want a company with a proven track record of high customer satisfaction. Before you shop for insurance providers, it can help to decide what you value most from a provider. Once you’ve identified your priorities, you can read reviews, request quotes and compare coverage.

• How do I know if my home has termites?

  Unlike a rodent or ant infestation, it can be difficult to detect termites, which live in the walls, support beams, floors, ceilings, cabinets, furniture and carpet. Some of the things that may indicate termite damage include soft or hollow wood, bubbling paint, splintered wood or mud tubes. You may also find termite pellet droppings.

• How much does termite extermination cost?

  The cost of termite extermination depends on a few factors, including the number of termites and the termite colony’s size. Small infestations are usually less expensive to treat, and widespread infestations can be more expensive. Before hiring an exterminator, request price quotes from a few companies to help ensure the best rate.

• Can I file a home insurance claim for termite damage?

  If the termite infestation triggers a covered peril, like a fire, then it is possible your home insurance might cover the fire-related damage. Or, if the homeowner was unaware of the infestation and the termite damage caused a total home collapse, home insurance might help pay for the rebuild. But, if you spot termites in your home and want to file a claim, it is highly unlikely that you will get home insurance to cover the termite damage.