Does homeowners insurance cover termites?

Homeowners Insurance and Termite Damage: Coverage and Prevention

Termites, despite their small size, can lead to significant structural damage, costing Americans around $5 billion annually for control and repairs. The question arises: Does homeowners insurance cover termite damage? Generally, the answer is no, with few exceptions. The editorial team at Bankrate, including licensed insurance agents, delves into the nuances of termite coverage under home insurance and provides strategies for prevention.

 Coverage of Termite Damage Under Homeowners Insurance

Most homeowners insurance policies do not cover termite damage. Insurance providers typically view issues with bugs, pests, and rodents as preventable, expecting homeowners to undertake measures to avert infestations. Some policies explicitly exclude insect damage, while others may not mention insects, implying that termite-related damages are unlikely to be covered. It’s advisable to thoroughly review your insurance policy for any mention of termites or insect damage.

Insurance companies usually deny claims for termite damage attributed to neglect, such as failing to seal potential entry points, or for damage that has developed gradually over time. Moreover, personal property damaged by termites falls outside the scope of coverage. In the rare instances where termite damage might be covered, it typically only extends to the physical structure of the home and attached structures, depending on specific policy terms.

 When Termite Damage May Be Covered

Coverage for termite damage by homeowners insurance is rare, with potential exceptions including:

– Covered Perils Triggered by Termites: If termites cause damage leading to a covered peril, such as chewing through wiring and sparking a fire, insurance may cover the fire damage, contingent upon the adjuster’s determination of the cause.

– Collapse Due to Termite Damage: Home insurance might cover the costs of rebuilding if a termite infestation leads to the home’s collapse, provided the homeowner was unaware of the infestation. Knowledge of the termite presence typically results in claim denial.

 Handling Non-Covered Termite Damage

Since termite insurance policies are virtually non-existent, homeowners facing termite damage will need to consult an exterminator for assessment and treatment costs. It’s beneficial to obtain multiple quotes from reputable companies. Following extermination, a contractor should evaluate and quote repairs for the termite damage.

 Repairing Termite Damage

While termite damage repair is not covered by homeowners insurance, various repair options exist. Damaged wood can be replaced or reinforced with steel frames for non-structural elements. Structural repairs might necessitate hiring a skilled contractor, with multiple estimates advisable to ensure cost-effectiveness. It’s crucial to treat any remaining termites before commencing repairs to prevent future infestations.

 Termite Bonds and Warranties

Although standard homeowners insurance doesn’t cover termite damage, termite bonds and warranties offer an alternative. These agreements with pest control companies guarantee prevention measures and may cover damage repair costs. Termite bonds, often required by lenders in high-risk areas, and warranties provide a safeguard against damage, with some warranties transferable between homeowners.

 Detecting and Preventing Termite Damage

Early detection of termites can prevent extensive damage. Signs of infestation include soft or blistered wood, mud tubes, termite swarms, and droppings. Preventive measures include eliminating food sources, sealing entry points, and scheduling annual inspections to keep termites at bay. While certain pesticides can treat infestations, professional extermination is recommended for swift and effective resolution.