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Termites can cause major problems for homeowners. When termites enter your home, you can be exposed to a variety of damage, such as: It is therefore important to have insurance coverage for this type of damage.
Here’s what you need to know about home insurance and termites:
Does home insurance cover termite damage?
Home insurance is said to cover “sudden and accidental” problems. Since termite infestations are usually insidious and can be prevented with routine maintenance, your standard homeowners insurance is unlikely to cover them. You must call a pest controller to deal with the problem.
That being said, there may be a few exceptions if your policy covers termite-related damage, including:
- Sudden house collapse: If termites have caused your house to collapse, home contents insurance can step in. However, this only occurs if you did not know about the termites, for example because they were hidden in your ceiling or floorboards.
- Termite damage results in an insured event: Your homeowners insurance may cover you if termite damage resulted in an insured event. For example, if termites caused damage to the wiring in your home and it resulted in a fire, your homeowners insurance would likely cover the fire damage. Fire damage is covered by standard home insurance.
- An Insured Peril Causes Termites: If a specific type of water damage, such as For example, if a pipe bursts or a sudden leak leads to a termite infestation, your insurance company may pay for termite damage in addition to water damage. However, the water damage cannot be due to neglect or poor maintenance.
Important: Before buying a home, make sure you order a termite inspection from a certified pest inspector. If the inspector finds termite damage, you can use this information to renegotiate the price with the seller or ask them to fix the damage before you close the home.
Coverage limits for termite damage
If your home insurance covers termite damage to your home, you are entitled to reimbursement up to your insurance limits. Standard home insurance is based on the cost of rebuilding your home from scratch in the event of a total loss.
This depends on factors such as the age of your home, the number of rooms, square footage, style, and local construction and labor costs. Keep in mind that the cost of rebuilding your home is different than its fair market value that you might see on a real estate website.
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When is termite damage not insured?
Home insurance won’t pay for termite damage in these common situations:
- Neglect: As a homeowner, you are responsible for maintaining your property. If you don’t take steps to prevent termite damage, your policy will not cover the infestation.
- Gradual Damage: In most cases, termite damage does not come on suddenly. Instead, it develops slowly over time. Because you should notice it and take steps to fix it, your home insurance won’t pay for silent damage.
- Personal property damage: Typically, home insurance does not cover personal items such as furniture and instruments that have been damaged by termites. It only cares about the physical structure of your home and all attached structures depending on the conditions.
Learn more: Does home insurance cover natural disasters?
How to file a termite damage claim
If you think you have a valid homeowners insurance claim for termite damage, follow these steps to file it:
- Contact your home insurance company. Don’t wait to inform your insurer about the damage. The sooner you contact them, the higher your chances of a successful claim.
- fill out application forms. Next, you need to fill out some forms to officially submit your claim. Complete this as soon as possible and submit it in the manner your insurer requires.
- Document the damage. Take photos and videos of the termite damage in your home. This documentation can help ensure you receive maximum billing (payment for repairs).
- Wait for a claims adjuster. Once your insurance carrier receives your forms, they will send a claims adjuster to your home. The expert will assess the damage and determine whether you have a legitimate claim.
- Get estimates for repairs. Call up a few exterminators and contractors to find out how much it will cost to repair the termite damage. The quotes you receive can help you negotiate the amount you get from your home insurance provider.
- Receive severance pay. Finally, your insurer will give you a settlement. Make sure you are happy with the amount before accepting it.
What to do if your claim for termite damage is denied?
If your termite damage claim is denied, consider these options:
- Contact your home insurance company. First, you should contest your claim with the insurance company. You can share your photos and videos with a claims manager or someone higher up.
- Hire a lawyer or public surveyor. Depending on your situation, it may be worth engaging a lawyer or public expert. These professionals can assist you with the dispute and point out anything the adjuster may have missed.
- explore mediation. If you seek mediation, an impartial third party will help you and your insurance carrier reach an amicable settlement. Contact your state’s insurance department to learn more about available placement programs.
- File a complaint with your state. You can make a formal complaint to your state’s insurance department, usually online or by mail. If you do so, include any supporting evidence to support your position. Do your research to find out the complaints laws and processes in your state so you know exactly how to make a complaint and when to expect a response.
Learn more: How to dispute a denied home insurance claim
Frequently asked questions about home insurance and termite damage
Here are the answers to some common questions about home insurance and termite damage.
What to do if termite damage is not covered?
If your homeowners insurance excludes termite damage, you’ll need to contact a few exterminators and contractors to assess the damage and provide you with quotes.
Since you will have to pay for the work out of pocket, choose companies with fair prices and positive customer reviews. Do not attempt to troubleshoot the problem yourself.
How can you prevent termite damage?
To prevent termite damage in the first place, discard plants, mulch, firewood, and woody materials that contain cellulose, which is the substance termites eat.
Also check the foundation of your house for small cracks and holes. Seal up any you find to keep termites out.
Finally, don’t forget to schedule an annual termite inspection by a professional exterminator.
How do you recognize termite damage?
As a homeowner, you should have many signs of termite damage on your radar. These include sagging or discolored drywall, peeling paint, hollow-sounding wood, warping hardwood or laminate floors, crumbling or damaged wood, and labyrinthine patterns on your floors, walls, and furniture. Mounds of wings that look like fish scales and tubes of mud in your home’s foundation can also indicate a termite infestation.
How much does termite removal cost?
According to HomeAdvisor, termite removal can cost anywhere from $228 to $957 or even more. Factors such as your location, the company you choose, the size of the infestation, the types of termites in your home (such as drywood termites versus underground termites), and the type of damage that needs repairing will help determine the exact one price.
You may also need to budget for additional expenses for things like termite monitoring stations to check for termite activity and termite reappearance, which is common with these aggressive pests.
Should you have a house checked for termites before you buy it?
There is no federal law requiring a termite inspection prior to buying a home, but it is in your best financial interest to request one. Some lenders may also require a termite clearance letter stating that there is no evidence of termites or termite damage.
Read Next: How Much Home Insurance Do I Need?
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Disclaimer: All insurance related services are provided by Young Alfred.
About the author
Anna Baluch
Anna Baluch is a freelance personal finance writer with years of experience writing for high-profile media in the business and personal finance space. Her work can be found in media such as The Balance, Freedom Debt Relief, LendingTree, Credit Karma, Nav and RateGenius. She has a bachelor’s degree in marketing from Northwood University and an MBA from Roosevelt University.
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