Termite Bonds and Warranties: What You're Actually Paying For

A pest control company treats your house for termites and then offers you an annual renewal contract. They call it a "termite bond." You pay $250 to $500 a year and in return they promise to protect your home from future termite problems. Sounds straightforward. It's not. The details in these contracts vary wildly between companies, and the wrong bond can leave you paying out of pocket for thousands in damage that you assumed was covered.

I've reviewed termite bonds from over 30 pest control companies while writing consumer complaint analyses, and the gap between what homeowners think they're buying and what the contract actually says is enormous.

Retreat Bond vs. Repair Bond

There are two types of termite bonds and the difference between them is thousands of dollars.

Retreat-only bond ($200-$300/year). If termites come back, the company re-treats at no additional charge. That's it. They spray, inject, or install more bait stations. Any damage the termites caused before you noticed them? That's on you. Your homeowner's insurance won't cover it either -- standard policies exclude termite damage. So if termites ate through your subfloor before you found them, the retreat bond covers the re-treatment but you're paying a contractor $5,000 to replace the floor.

Repair bond ($300-$500/year). The company re-treats AND pays for structural repairs caused by termite damage that occurred while the bond was active. This is the one most people want. But the fine print matters more here than anywhere else in home services.

The Fine Print on Repair Bonds

I've seen repair bond contracts with repair caps as low as $25,000. That sounds like a lot until a structural engineer tells you the termite damage to your floor system will cost $40,000 to fix. Suddenly you're covering the difference.

Things to look for before you sign:

Repair cap. Most bonds cap total repair coverage at $25,000 to $100,000 over the life of the bond. Some cap per-incident. Ask which.
Cosmetic exclusion. Nearly every repair bond excludes cosmetic damage. They'll replace the structural wood but not the hardwood flooring, paint, or trim on top of it. The structural fix might cost $3,000 but making the room look normal again costs another $3,000 -- and that's on you.
Annual inspection requirement. The company must inspect your property once a year, usually between March and October. If you miss the inspection window or refuse access, the bond is voided. No exceptions. They'll send you a letter, maybe two. If you don't schedule, you lose coverage.
Who does the repairs? Some companies use their own repair crew. Others require you to get estimates and they reimburse. A few let you choose your own contractor up to a dollar limit. Know which model your bond uses before you need it.

What Voids Your Bond

Every bond contract lists conditions that void coverage. The most common:

Structural modifications. You add a room, build a deck against the house, or enclose a porch without notifying the pest control company. The new construction wasn't treated, so they're not responsible for termites that come through it. Fair enough, but some companies use this clause aggressively. If you're planning any construction, call them first and get the new area added to the bond.

Soil changes. Adding soil, mulch, or flower beds against the foundation above the termite treatment zone. The chemical barrier is in the soil at a specific depth. Pile new soil on top and termites can bridge over it. This is the most common accidental void I've seen.

Missed annual inspection. Already mentioned this but it bears repeating. Miss the inspection, lose the bond. Period. Put it on your calendar.

Non-payment. Let the renewal lapse and the bond terminates. Restarting typically requires a new full inspection ($75-$150) and potentially a new treatment ($1,500+) before they'll issue a new bond.

Transferring a Bond When You Sell

A transferable termite bond is a real selling point for your house. The buyer inherits ongoing termite protection without paying for a new treatment. Transfer fees range from $50 to $150. Some companies require an inspection before transfer and may charge for that separately.

Not all bonds are transferable. Check your contract. If it says "non-transferable," the bond ends when you sell and the new owner starts from scratch. This matters at resale because buyers in termite-prone areas specifically ask about bond status.

If you're buying a house with a transferable bond, verify it directly with the pest control company. Don't take the seller's word for it. Call the company, give them the property address, and confirm the bond is active, paid up, and eligible for transfer. I've seen sellers claim bond coverage that lapsed two years earlier.

Is a Termite Bond Worth It?

Depends on where you live.

If your house is in the Southeast, Gulf Coast, Texas, or California, the math works. Subterranean termite pressure in these regions is high. A treatment costs $2,000 to $5,000. Annual bond renewal is $200 to $500. Over ten years, you pay $2,000 to $5,000 in bond fees for what would otherwise be another $2,000 to $5,000 treatment if termites return. And with a repair bond, you get damage coverage on top of that. The risk justifies the cost.

If you live in Montana, Minnesota, or North Dakota where termite pressure is minimal, a bond is probably not worth it. The probability of infestation is low enough that self-insuring (setting aside $200/year in savings) makes more financial sense than paying a pest company.

For everyone in the middle -- Mid-Atlantic, Midwest, Pacific Northwest -- it depends on your specific property. Houses with crawl spaces, older construction, and heavy soil moisture are higher risk. Newer slab-on-grade homes with pre-construction treatment are lower risk. Talk to a local pest control company about the termite activity in your specific area before deciding.

Questions to Ask Before Signing

Is this a retreat bond or a repair bond?
What's the maximum dollar amount for repairs?
Does the repair coverage include cosmetic damage or only structural?
What specific actions on my part void the bond?
Is the bond transferable to a new owner?
What happens if I miss the annual inspection window?
What's the renewal process and how much notice do I get before it lapses?

Get answers to all seven in writing before you sign. A pest control company that won't put their terms in plain language on paper probably has terms you won't like when you need to file a claim. Check the insurance and pest damage guide for more on how homeowner's insurance and termite bonds interact.