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Q: I had no idea I had termites in my house and the need for repair is great; They destroyed my floors and even some furniture! Now my agent says my home insurance won’t cover the damage. Is that true?
A: Unfortunately, your realtor is right when he says that home insurance doesn’t usually cover termite damage; Termite infestation is considered preventable with care by the homeowner. Once the damage has been done, a homeowner has little choice but to invest in precautionary measures for the future. In certain cases, however, home insurance can provide coverage — but these cases tend to be both extreme and specific.
Standard homeowner insurance policies typically do not cover damage caused by termites (or damage caused by other pests). Homeowners are responsible for preventing an infestation.
Your homeowners policy is designed to cover damage caused by unexpected accidental events, whether it’s a tree falling on the garage or a kitchen fire. It’s up to homeowners to keep up with regular maintenance. And especially for those who live in warmer, wetter climates, finding house termites and preventing them should be a top priority on your maintenance checklist. Although homeowners are surprised by the sudden damage caused by a termite infestation, this scenario is not considered an “accident” as the termites were preventable with care and are therefore the homeowner’s responsibility.
In addition to regular inspections and maintenance, homeowners can look for signs of termites to catch a problem at an early stage. What are termites? There are three different types of termites: drywood, wetwood, and underground termites, but they all feed on cellulosic materials such as wood and paper. Different conditions attract different types of termites. Moisture attracts wetwood termites, so keep water out of the house by making sure gutters are in order, for example. Fix leaky pipes, faucets, air conditioners and deteriorating roof shingles. Look for evidence these unseen creatures have taken up residence by examining all of the wood, including door frames, cabinets, and window panes, and tapping on the foundation to see if it sounds hollow. Grand pianos lying on the windowsill and anything that looks like coffee grounds or sawdust in unexpected places should also sound the alarm.
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However, there may be some instances where homeowners can be compensated for repairing damage caused by termites.
While the first answer to the question, “Is termite damage covered by insurance?” may seem daunting, a homeowner can get lucky when filing a termite-related claim. Whether a termite damage repair claim will be accepted depends on the specifics of your policy. For example, fire damage is usually explicitly stated as an event covered by the insurer. If termites gnawed through cables that started the fire, owners can be compensated for items damaged by the fire.
However, a random event like a fire is different from gradual damage. For example, let’s say a wooden porch looks unusually worn and swollen from its original form. An insurer will claim that the owners neglected this evidence of termites eating on the porch and that the owner should have addressed it. Any type of delayed maintenance that results in damage is due to the owner’s negligence and an insurer will dispute this claim.
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A sudden house collapse due to termite damage may be covered by home insurance.
It’s an extremely rare occurrence, thankfully, but termites can nest unnoticed in a home’s structural wood for years, quietly devouring themselves. If there are no signs of termites, it can be difficult to figure out how much damage termites have done. You may only notice them when a house suddenly collapses; not just sag or break, but actually fall apart and become completely uninhabitable.
Homeowners may be able to get compensation up to their policy limit for the collapse, but they must prove the infestation was hidden and totally unknown to them. Again, the details of what is covered in the policy and for how much matter. Policy limits may not be sufficient to rebuild or purchase a similar home. Whether and how much an owner is compensated for damage to items in their home, such as furniture, or for medical bills due to injuries sustained in the event also depends on the specifics of the policy. And some policies may pay more than just repairs; An owner may be compensated for temporary housing expenses if this is specified in their policy.
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If an insured risk or hazard causes the termite infestation, you can receive compensation.
Homeowners may also have a valid termite damage claim, which must be approved by their insurer if they can show that the root cause of their termite infestation is directly related to a “covered peril” in their policy, such as: E.g. wind or fire.
For example, think of a burst pipe creating an enticing humid environment for termites. If a homeowner can argue that the termite damage is directly related to the internal leak, the claim can be successful. Or if a storm rips off some roof shingles that can’t be seen, which is also a termite haven, the same logic applies. The wind is the main cause and also a named hazard covered by home insurance.
Consider regular termite inspections to avoid the cost of repairs after termite damage to your home.
Prevention is key when it comes to termites. The cost of the termite protection plan is fairly affordable (especially compared to the cost of repairing damage), and annual inspections average between $50 and $280. Homeowners unfamiliar with termites (like those who move from a cold climate to a humid, warm place) can benefit from an inspection, allowing a professional to show them any locations that might provide clues to these woodeaters. Closets, ceiling beams, wallpaper, window sills and many other places where there is wood or pulp materials should be included in a checklist.
When an owner sells their home, the buyer’s mortgage lender may request an inspection so that the property that the mortgage guarantees is not threatened by termites. If a home seller has neglected maintenance and termites are found during the sale, the buyer and their mortgage lender can request a termite guarantee or guarantee that covers future treatments to ensure those critters are gone. These bonds average up to $2,000 and offer future treatments to keep termites at bay.
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While termites are not usually insured, the best home insurance companies can offer policies to suit your budget and needs.
With any insurance product, consumers want budget-friendly premiums and may not initially be overly concerned with how comprehensive the coverage is. However, once an insured event occurs, the responsiveness of the insurance provider and coverage in the policy is paramount. The details of the contract are particularly important when it comes to household contents insurance. Some policies are only sold through agents, others online. Chatting with an agent or representative and researching policy quotes can help narrow down policies that are affordable and meet your needs.
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Choosing the right policy from one of the best homeowners insurance companies involves finding discounts as well as adequate coverage for your specific home. For example, one way to lower premiums is to choose a higher deductible, but this is only a sensible strategy if a homeowner has liquid savings to draw on to pay the deductible. A number of insurers offer discounts when customers buy multiple policies, such as a car and home. The location of a house also plays a role in the decision. Not every provider covers every state, and it can be helpful to discuss the unique needs in your locale, especially when considering the question, “Does insurance cover termite damage?” Customer reviews and other rankings help narrow down reliable insurers. Owners concerned about termites can ask neighbors about their experiences filing a claim with their business.
