Termite Bonds and Warranties: What They Actually Cover
The bond is the product, not the chemical. Renewal runs $200 to $400. Retreatment-only against damage repair is the distinction that decides its value.
A termite bond is a service agreement, and it is the actual product most termite companies sell. Annual renewal typically costs $200 to $400 to keep it in force. The distinction that decides its value is retreatment-only against damage repair coverage, and whether it transfers when you sell. Those two terms can differ several fold in what the bond is worth.
Homeowners compare termite quotes on the treatment price. Companies compete on it. The money, on both sides, is in the agreement attached to it, and almost nobody reads that before signing.
What a termite bond is
A termite bond, sometimes called a warranty or service agreement, is a contract under which the company inspects periodically and responds if termites return. The initial treatment is the entry point; the bond is the ongoing relationship, and the annual renewal is what keeps it alive.
This is why the first year costs more than later years, and why the renewal exists at all. Our guide to termite treatment costs covers the treatment side, from $275 to $1,600 for most homes with whole-home jobs averaging around $1,500.
The distinction that decides everything
| Retreatment only | Retreatment plus damage repair | |
|---|---|---|
| If termites return | Company treats again at no charge | Company treats again at no charge |
| If termites cause new damage | You pay for repairs | Company pays, usually up to a cap |
| Typical cost | Lower | Higher |
| What you are insured against | The cost of more chemical | The cost of structural repair |
The gap matters because structural repair is where the real exposure sits, and standard homeowners policies in the United States generally exclude termite damage on the basis that infestation is preventable through maintenance. If your bond is retreatment-only and your insurer excludes termites, nobody is covering repair but you.
Where damage repair is included, ask for the cap in writing. A repair warranty with a low cap on a large house is closer to a gesture than a protection.
The six terms to check before signing
- Retreatment only or damage repair, and the repair cap if there is one.
- Transferability. A transferable bond is an asset at closing. A non-transferable one is worth nothing to a buyer, and buyers increasingly ask.
- What voids it. Common triggers are lapsed renewal payments, moisture conditions the owner did not fix, and disturbance of the treated soil zone, which can include landscaping, a new deck or a French drain.
- Renewal price escalation. Ask whether the $200 to $400 figure is fixed or rises annually.
- Inspection frequency and whether the annual inspection is included in the renewal or billed separately.
- What counts as a claim, including whether swarmers alone trigger it or only confirmed structural activity.
Why it matters when you sell
A transferable bond in force at closing removes a negotiating point and demonstrates the property has been under professional monitoring. It sits alongside the WDI report a lender will typically require before closing, which is a separate document costing $75 to $150 and covered in our guide to termite inspection costs.
The two are frequently confused. The WDI report says what an inspector found on one day. The bond says who is responsible if termites appear later. A buyer benefits from both, and they are not substitutes.
Letting a bond lapse to save a renewal is one of the more expensive small economies available to a homeowner, because reinstating usually means a new treatment rather than resuming payments.
Why bonds matter to the business too
From the operator’s side, termite bonds are recurring revenue with unusually long contract life, which is why they are valued above general pest accounts. Reported per-account values put termite warranty accounts at $2,000 to $3,500 against $1,500 to $2,500 for residential general pest, detailed in our guide to what a pest control business is worth.
There is a corresponding liability. Renewal payments are collected in advance against a future obligation to inspect and, under repair agreements, to pay for damage. How that deferred revenue and contingent liability are treated at closing is a negotiated point in any sale, and on a large termite book it is material.
Frequently asked questions
What is a termite bond?
A service agreement under which the company inspects periodically and responds if termites return, kept in force by an annual renewal typically costing $200 to $400. It is the ongoing product most termite companies sell, with the initial treatment as the entry point. Coverage ranges from retreatment only to retreatment plus damage repair.
Is a termite bond worth it?
It depends on the coverage type and local termite pressure. Standard homeowners policies in the United States generally exclude termite damage, so a retreatment-only bond leaves structural repair with you while a damage repair bond covers it up to a stated cap. Ask for the cap in writing before deciding.
Does a termite bond transfer when you sell the house?
Only if the agreement says so. A transferable bond is an asset at closing and removes a negotiating point; a non-transferable one is worth nothing to a buyer. Check transferability before signing, and confirm what the transfer process and any fee involves.
What voids a termite warranty?
Commonly a lapsed renewal payment, moisture conditions the owner failed to address, and disturbance of the treated soil zone, which can include landscaping, adding a deck or installing drainage. Read the exclusions before doing groundwork near the foundation, since routine garden projects can breach the treated barrier.
Sources
- Contractor-reported renewal and treatment pricing compiled by home services marketplaces, 2026. Sample sizes and methods are not published by those sources.
- Per-account valuation ranges as published by pest control M&A advisers, 2026. Those firms broker transactions in the sector.