A termite bond is required in some states when buying a property, however, what it is and what it does varies between states, so you need to know what you’re signing up for.
Here are the basics of what you need to know about what a termite bond is:
It’s an insurance policy for your new house against damage from termites with a pest control company. Sometimes referred to as “pre-purchase termite protection” or “termite warranty.
What Is The Purpose Of A Termite Bond?:
What Is The Purpose Of A Termite Bond?
Termite bonds or warranties are designed to give homeowners protection and peace of mind so they don’t have to worry about costly termite damage costs.
The bond is what you pay to ensure that if your house falls victim to termites, the damage will be repaired by the pest control company that issued the bond.
Along with this, termite bonds can be important when physically purchasing a home. Some mortgage loans won’t give you a loan for a house unless there is a termite bond in place. If a home being sold has a history of termites or has a current termite infestation, then the mortgage company wants to ensure that the house is protected.
What Are The Costs And Benefits Of A Termite Bond?
If no termite damage occurs, you’ve lost what was essentially an insurance policy (costs money but provides no payout).
How Much Is A Termite Bond?
This varies from state to state and pest control company to pest control company. It can cost anywhere between $1000 up to about $2,000.
Who Provides Termite Bonds?
Only certified and eligible pest control companies can provide termite bonds. This generally means that any company that offers termite bonds are trusted and skilled enough to do the job.
When Should I Get A Termite Bond
If you are listing your home for sale and you know there has been past termite activity or a current termite infestation, then you should get a termite bond prior to listing your home for sale. If you delay the termite bond until the home inspection, it can delay your homes sale by weeks, so it’s better to be proactive and get this done prior to listing your home.
Should I Get A Termite Bond?
Overall, if you’re someone that wants to have peace of mind for a very large investment, then a termite warranty or bond will provide you with peace of mind.
If you have a property that is already listed for sale, then you should also get a termite bond. When a buyer’s loan company reviews the inspection report, they will want to know what kind of warranty or guarantee your property has against any future damage from termites. In order to ensure that the property is termite-free and this matter is taken care of, it would be in your best interest to get a termite bond before going on the market.
At the end of the day, if you get a termite warranty at least you know that you’ll be covered for any future termite costs and you don’t have to worry about it. I always suggest getting a termite bond if possible. If you have a termite bond, you don’t even have to wonder how do I get rid of termites, because you’ll be covered by a professional service!