The standard homeowners insurance policy rarely covers termite damage because most insurers consider it a maintenance issue. Essentially, homeowners can prevent termite damage if they take care of the situations that make infestations more likely.
The good news? That answer, as with most insurance-related questions, depends on the specifics of your situation.
Read on to find out why insurance usually doesn’t cover termite property damage, the few situations where it might, and what you can do to reduce the risk of termites.
Why doesn’t homeowners insurance cover termite damage?
Home insurance covers damage caused by sudden and accidental events, but termite problems happen over time. Moreover, infestations – and the damage they cause – are generally preventable if you conduct routine maintenance. These facts mean that termite damage is a peril that standard homeowners insurance policies don’t cover.
That said, there may be some rare scenarios where your homeowners policy covers damage from termites. This is true if an unexpected covered event caused the termite activity, resulting in sudden damage to your home.
Situations where termite damage might be covered by insurance
Scenario 1: Termites cause your house to suddenly collapse
Your insurer may cover your damages if termites or other pests cause your home to suddenly collapse. This may be the case if you couldn’t reasonably have known about the termites and the damage they were causing (i.e., the termites and their damage were hidden). But if you ignore signs or choose to do nothing about termite activity, then your insurance company will likely deny your claim.
You should note, too, that your house has to literally collapse from termite damage for you to have a compensable claim. Cracked, bulging, or sagging wood typically isn't covered.
Scenario 2: A covered peril causes a termite infestation
You might also be covered for hidden termite damage when a covered peril causes an infestation and leads to a loss. For example, let’s say a pipe bursts in your house. The water damage creates an environment that attracts termites, leads to an infestation, and causes damage to your home. Since a burst pipe is a type of water damage usually covered by home insurance, your insurer may cover hidden termite-related damage.
Be aware that your insurance company may deny your claim compensation if you didn't report the initial cause of the loss, in this case, the burst pipe. It may also refuse your claim benefits if the termites or their damage weren’t hidden.
It's worth noting that neither scenario is automatically covered by your home insurance. Whether or not your insurer covers a loss usually comes down to the circumstances surrounding the loss and the fine print of your insurance policy. Be sure to review your contract or speak to your insurance agent if you have any questions regarding termite insurance.
What to do if termite damage isn’t covered
If your policy doesn't offer termite coverage for your situation, you'll still want to take action quickly to remedy the situation. Before conducting repairs, be sure to remove the existing pests to prevent further damage. A qualified pest control company can ensure thorough extermination.
The next thing to do is repair the damage. If you caught the infestation early and the damage is cosmetic, do-it-yourself fixes alongside other preventative measures may be enough. But if the termite destruction causes more extensive structural issues, your best bet is to work with a qualified contractor. A professional termite inspector can determine the extent of the damage and let you know the best next steps for termite treatment and repairs.
How to prevent termite damage
Termite infestations can go unnoticed before they cause costly and serious damage to your property. The National Pest Management Association (NPMA) reports that termites account for $5 billion in property damage each year.
This makes termite prevention crucial, and it’s especially important during warmer months, like spring and summer, when an infestation is more likely. Regular maintenance can go a long way to reduce your risk of termites. Here are some tips to help you prevent an infestation.
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Hire a professional termite inspector: Experts recommend scheduling a routine pest inspection once every year. Depending on your state and property size, a termite inspection can cost between $50 and $250, according to home repair site Angi.
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Minimize soil-to-wood contact: Keep an 18-inch gap between the soil and any wood components of your home, such as wood sidings, decks, and porches. Also, stack any wood pieces, like firewood or lumber, at least 20 feet from your property and inspect them before bringing them indoors.
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Minimize moisture: Termites thrive in warm and wet conditions. Ensure that downspouts, gutters, and splash blocks divert water away from your property. You'll also want to inspect your pipes, air conditioning units, and faucets for leaks and damages, repairing them as soon as possible.
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Perform landscaping: Termites are attracted to wood and paper. So you'll want to remove dead trees, stumps, cardboard, newspaper, and the like from your yard.
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Apply preventative termite treatment: Before you prime or paint the wood portions of your home, spray borate on it to repel termites.
Frequently asked questions: Termite damage and insurance coverage
Is termite damage obvious or hidden?
Termites can be difficult to detect, but signs of the damage they cause are less so. For example, you want to get a professional inspector to your home if you notice:
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Blistering or darkening wood.
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Swollen or buckling wood.
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Stuck windows and doors.
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Peeling or discolored wallpaper or bubbling paint.
You also want to keep an eye out for evidence of termites, such as mud tubes, discarded termite wings, and termite droppings. Noticing these signs may give you a chance to act before serious damage occurs. If you suspect a termite problem, call a professional pest control company to address it.
How does termite damage affect property value?
Termite damage can have an adverse effect on your property value, specifically lowering it. A termite infestation can be costly to get rid of and could lead to significant damage. Also, previous infestations can make the home less attractive to potential buyers as it indicates a future risk of it happening again.