Does House Insurance Cover Termites?

Standard homeowner insurance policies typically protect against unexpected property damage. However, a common question arises regarding termite infestations and their damage. In most situations, standard policies do not cover termite damage. This exclusion is because termite activity is considered a preventable maintenance issue, not a sudden, accidental event.

Standard Homeowner Insurance Exclusions

Standard homeowner insurance policies cover sudden and accidental perils. Termite infestations, however, are classified as gradual deterioration. This damage occurs slowly over time and is typically preventable with regular home maintenance and inspections.

Most policies exclude damage from “pests,” “insects,” “vermin,” or “rodents.” These exclusions apply to both extermination costs and structural damage. The distinction is between sudden, accidental damage, which is typically covered, and gradual deterioration, which is not.

Insurance companies consider it the homeowner’s responsibility to maintain their property and prevent infestations. Damage avoidable through diligence, such as routine inspections or addressing moisture issues, falls outside typical coverage. Therefore, homeowners usually bear the costs of treating an infestation or repairing termite-damaged wood.

Coverage for Related Damage

While direct termite damage is generally excluded, specific situations exist where indirect damage might be covered. This occurs if termite activity triggers a covered peril, leading to further damage. The policy might then cover the damage from the covered peril, but not the initial termite damage or extermination costs.

For example, if termites chew through electrical wiring within walls, causing a fire, the fire damage itself, being a covered peril under most policies, might be covered. However, the cost to repair the termite-damaged wiring or to eradicate the termites would remain the homeowner’s responsibility. Similarly, if termites severely compromise a structural beam, leading to a sudden and unexpected collapse, that damage could be covered. This coverage often depends on the collapse being truly sudden and the termite infestation having been hidden and unknown to the homeowner.

Another scenario involves water damage. If termites damage a pipe, causing a sudden water leak, the resulting water damage might be covered. However, repair of the pipe itself, if due to termites, would likely not be covered. Claim success depends on policy wording, circumstances, and the insurer’s interpretation of a direct covered peril. Homeowners must demonstrate a clear link between a covered peril and the damage, distinct from gradual termite deterioration.

Dedicated Termite Protection Options

Since standard homeowner insurance typically excludes termite damage, homeowners seek alternative protection. A common option is a specialized termite insurance policy, often called a “termite bond” or “termite warranty.” These standalone contracts, usually from pest control companies, cover termite treatment and often repair new damage up to a specified limit.

These specialized agreements often require an initial inspection and treatment of the property, followed by regular renewals and ongoing monitoring. The coverage limits can vary significantly, with some contracts offering repair coverage ranging from hundreds of thousands to even a million dollars, depending on the provider and the terms. Initial costs for these termite bonds or warranties can range widely, typically from $500 to $2,500, with annual renewal fees often falling in the range of $20 to $300 or more.

Homeowners can also use pest control service contracts. These focus on ongoing monitoring and preventative treatments. Some comprehensive contracts guarantee re-treatment if termites reappear, and a few offer provisions for repairing new damage discovered while active. Homeowners must thoroughly review the terms, conditions, and coverage limits of any dedicated termite protection, including covered types, guarantee duration, and exclusions, before committing.