A termite bond, or service contract, is a legal agreement between a pest control company and the homeowner. Once the company has treated a house for termites and this contract takes effect, the company promises to retreat the house if termite infestation reoccurs and to pay for repairs, if needed.
A termite bond protects the homeowner’s investment and can be a selling point if the bond is transferable to a new owner. Termite control is not typically covered by general pest control services, and usually homeowner’s insurance does not cover termite damage. Prevention is the best strategy against termites. Typically, a homeowner pays annual installments for termite bonds or service contracts. The cost of these agreements varies according to the size of the house, the home's location and the type of construction needed.