Termite bonds and termite letters are terms that are sometimes used interchangeably, but they actually mean different things. So what is a termite bond, and what is a termite letter? A termite bond is a contract between homeowners and a pest control service, while a termite letter is a document, a termite inspection report.
Read our article to learn everything you need to know about termite bonds and termite letters.
What is a Termite Bond?
A termite bond is a contract between a pest control company and a customer (a home builder, a homeowner, or an organization, such as a condominium association) that includes services for termite prevention and termite control. It is a protection plan against termite infestations.
The terms of these termite contracts vary, but they usually include annual termite inspections and, if necessary, termite treatments. Some termite bonds include warranties that cover retreatments and repairs for termite damage.
What is a Termite Letter?
A termite letter (also called “termite letter for closing” or “termite clearance letter”) is formally known as Wood-Destroying Insect Inspection Report (WDIIR), Wood-Destroying Insect Report (WDIR), or NPMA-33. This document is prepared by a pest control company to inform a buyer or lending institution about termite presence or damage.
Termite inspection letters detail previous and current infestations and can also indicate areas where potential termite problems may appear.
You are not required to have a termite bond to sell your house. However, depending on your state’s legislation, if you accept an offer from a buyer, they can require a termite letter. Similarly, lenders often require termite inspection letters to approve mortgage applications.
What is not included in a termite letter? A WDIIR is not a complete structural damage report, as it only contains information about visible damage caused by wood-destroying insect infestations. Other types of damage, such as water damage or damage caused by fire, earthquakes, and other causes are not covered in this report.
A WDIIR also does not guarantee the complete absence of pests or termites since there are limitations to the inspection process.
How Much Does a Termite Bond Cost?
Termite bond costs range anywhere from $500 to $2,000. The size of the property, structural conditions, and your specific needs can influence the end cost. Here are the costs of other termite services usually included in a termite bond:
- Professional termite treatment costs range from $275 to $863.
- Termite inspection costs can range from $65 to $265.
The Pros and Cons of Termite Bonds
As much as termite bonds can offer protection against termites in your home, some disadvantages might need to be taken into account before making your decision. Here are the pros and cons of termite bonds:
Pros of termite bonds:
- Termite bonds cover the cost of termite treatments. If your area has a high risk of termite problems, a termite bond can help you save money in the long run. In case an infestation is found, you won’t have any additional costs. Some termite bonds even cover repairs for termite damage. (Companies call this a “repair bond.”)
- Termite bonds include annual inspections that can detect early signs of a termite infestation, preventing serious damage to your home.
- Termite bonds are usually transferable to new buyers, which can increase the resale value of your property and help to sell it faster. And how do you know if you have a termite bond? Well, that information is usually presented before you purchase your home.
If the property has a termite bond that was transferred to you, you will also receive the charges for the annual fees required to maintain the contract.
Cons of termite bonds:
- Termite bonds are costly. The annual fees of a termite bond can be expensive, and if you don’t see an imminent risk of a termite infestation, the costs might not be worth it.
If you live in Alaska, Maine, North Dakota, Montana, and the northern portion of Minnesota, termite bonds may not benefit you as they would homeowners living in a high-risk termite area, such as California, Florida, and the Southeast region of the U.S. - Termite bonds have a limited coverage of termite species. Not every type of termite is covered by every termite bond. You’ll have to be attentive if there are any other termite species common to your area that your contract leaves out.
- Termite bonds don’t guarantee you’ll never suffer a termite infestation. The regular checks and treatments termite bonds provide are still no certainty that you’ll never experience an infestation.
On the other hand, if a lender doesn’t require a termite letter, or if an infestation hasn’t occurred on your property or your region before, you might not need a termite bond at all. In such cases, homeowners can feel like termite bonds are unnecessary at best or even a waste of money at worst.
What Does a Termite Bond Cover?
A termite bond covers:
- Regular inspections by the hired pest control company, typically annually. Some companies can offer quarterly or other scheduled inspections in areas with heavy termite activity.
- Curative treatments against termites. If signs of termites are discovered, the termite bond covers control treatments with no additional cost for the homeowner.
Some termite bonds offer termite damage repair and retreatments if needed. Inquire with your chosen company, as not all of them include these services. Usually, only companies that are insured themselves can offer a termite warranty that covers damage repair. Even so, not all residences are eligible for these repair bonds.
A termite bond does not cover:
- Inspections for other pests, such as ants, bed bugs, and cockroaches
- Damages that can lead to a future termite problem, such as water damage
- Every termite species, so you’ll have to inquire whether all the species in your area are covered in the contract
How Long Does a Termite Bond Last?
A termite bond’s duration depends on the service provider. Some pest control companies require a yearly contract renewal, while others have contracts that last two years or more. Remember to ask the service provider if renewal fees are additional or already included in the termite bond contract.
Best Termite Bond Company
The best company for a termite bond depends on your needs and preferences. But here are some of the best pest control companies that also offer termite prevention and treatment services:
- Orkin
- Rentokil
- Truly Nolen
- Arrow Exterminators
- Terminix
FAQ About Termite Bonds
Why Do I Need a Termite Bond?
Most homeowners’ policies do not cover termite damage. If you live in a state with a high risk for termite infestations, you might need a termite bond to prevent future damage caused by these little critters.
How Can I Purchase a Termite Bond?
To purchase a termite bond, you will first need to get in touch with a pest control company. Each company has its own process, but typically, it goes like this:
- After getting in touch, the company will schedule an inspection. Some companies may charge an extra fee for the inspection, so remember to ask.
- During the inspection visit, the professional will check for signs of a termite infestation or termite damage and identify which type(s) of termite is damaging your home (if that’s the case).
- Based on the information collected at the inspection, the pro will customize a plan of action and offer you a contract proposal.
What is the Difference Between a Termite Bond and a Termite Warranty?
Both terms are used interchangeably, which can cause some confusion, but they are technically different. A termite bond is an agreement for preventive termite service provided by pest control companies and purchased by property owners. It is not an insurance product, but rather a contract of services that helps prevent and deal with termite activity.
A termite warranty is a kind of insurance policy offered by an insured company that covers retreatment and may or may not cover property damage caused by termites.
Insured pest control companies can include a termite warranty in the termite bond contract, which covers retreatments against termites and termite damage repairs (or a repair bond, as it is commonly called).
Can I Get a Termite Bond If I Have Spray Foam Insulation?
If you have spray foam insulation, companies can refuse to offer termite bonds since spray foam can impair the process of identifying and treating termites.
If you already have a termite bond and plan on getting spray foam insulation, take a look at your contract. Some termite bond contracts forbid certain modifications in the building, and spray foam insulation is usually one of them.
When to Call a Professional
Are you considering a termite bond? If you suspect your home is under termite threat, a termite bond can be of great help to you. Luckily, Pest Gnome is here to connect you to the best termite pros in your area. Get in touch today and schedule an inspection so you can rest safe from the threat of termites.
Main Image Credit:
Background: Richard Villalonundefined undefined / Canva Pro / License
Termites: BankerFotos / Canva Pro / License
Termite Damage: frank600 / Canva Pro / License
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