How to Choose a Termite Protection Contract

Termite Contracts, sometimes called termite bonds, are all the same right? Just go with the best deal. In eight years in the termite and pest control industry I've come to realize that this is the majority opinion of consumers in today's world. However, this attitude has also led many of those same consumers to surprises to what is and isn't covered under their contract, how long the contract is for, even what species of termites their contract covers, all of which can cost them hundreds if not thousands of dollars.

In this article I'll go over the basics of what to look for in your termite bond, and how to pick the best value not just the best deal.

At it's simplest a termite bond is insurance. Yes unlike other types of insurance there is a large upfront cost, but your annual cost for renewal is about the same as your car insurance, yet it covers something worth about ten times as much. That upfront cost is of course for a treatment. This treatment is what makes it less expensive to insure your mansion than your Mercedes (or your townhouse instead of your Toyota), and just like car insurance there are varying degrees of coverage.

The first thing you should look for in your termite bond is whether or not there is a deductible and if there is how much. While termites cause billions of dollars of damage annually in the United States, the average claim is between five hundred to a thousand dollars, so a deductible of a thousand dollars may seem like a good deal, but you can bet the company supplying your bond is hedging they won't ever have to pay out.

Along with the deductible you should see if there is a limit on damages. Remember that while the average claim is only that five hundred to a thousand, average means that the high end does in fact happen. Losing your home because more damage was done to it than is covered under the limit isn't a good deal either.

Next you should look under bond length. Most liquid, or conventional, treatments carry a ten year bond at the time of the writing. Whether or not those liquids will last ten years is anyone's guess. Factors as varying as climate changes, to seismic activity can cause faster or slower degrading of the effectiveness of the chemical treatment, however this is again the odds being played.

Termites work very slowly, and the devastating effect they can have on a person's home is largely dependent on them going unnoticed for a long period of time. Even if a liquid treatment is completely degraded after only five years, the odds are long that you ( or even a professional inspector ) will notice before the bond expires.

It is interesting to know that certain chemicals that have been on the market for less than ten years, are approved for ten year bonds. Baiting systems usually carry a life of the structure bond. This also is simple odds, a baiting system is easy for a company to control, and failure to pay your renewal (think of it as a premium), and the stations can be removed, most contracts state that you don't own your baiting system, the company that furnished it does, or in some cases the liscence holder of the system does, so it is good to note that unlike a liquid system, a baiting system can be repossessed.

Special attention should next be paid to what is covered under the bond. A bond that covers the entire structure may sound good, and there may seem to be little differance between this contract and one that covers structure and contents. However "structure" is something that is not always as clear as it sounds.

Somewhere on any contract is a list of exemptions, some of them make sense, and protect a company from frivolous lawsuits. Exemptions against medical bills caused by termite damage traces it's roots back to a lawsuit filed by a woman "traumatized" and in need of "constant therapy" due to having termite damage to her home. Some more clearly define what the bond covers. Since termite bonds are almost always for subterranean termites, a exemption against mold, or wood boring beetles, makes sense. Others may not make sense. For example it may sound good to have structure defined as "all wood necessary to structural support" until you have had to pay a contractor to repair an entire fourteen by ten foot wall worth of sheetrock.

Be sure to read any contract thoroughly and ask questions before you sign. If you are buying a conventional treatment that claims to be "life of the structure" find the loophole, because no liquid treatment can last forever.

Some contracts I have seen that read this way have stipulations that the bond will go to a "retreat only" bond unless a new treatment is performed every ten years. Retreat only means that they will treat your termites, but as for damages you are stuck. This is a little bit like buying a new car and getting full coverage and being told that unless you buy a new car every X number of years your coverage will go down to liability only.

I could literally write a book on the different ways I have seen consumers fall into traps with their termite bonds, but the best defense is to get all the facts, ask questions, understand what you are buying and above all remember, if it sounds too good to be true it probably is.