Home warranties do not typically cover termites under their standard plans. Most major providers explicitly exclude termite treatment and termite damage from base coverage. A few companies offer limited pest control add-ons that may include termite treatment, but even those come with significant restrictions, and none cover the cost of repairing damage termites leave behind.
What Standard Home Warranties Exclude
Home warranties are designed to cover mechanical breakdowns of home systems and appliances, things like your HVAC unit, water heater, or refrigerator. Pest infestations fall outside that scope entirely. American Home Shield, one of the largest providers in the industry, states plainly that its plans do not cover termite protection or termite damage. This is the norm across the industry, not the exception.
The reasoning is straightforward: home warranty companies view pest prevention as routine maintenance, which is the homeowner’s responsibility. Termites don’t cause a sudden mechanical failure. They cause slow, cumulative damage over months or years, and warranty providers treat that the same way they treat rust, mold, or neglected upkeep.
The Add-On Option (and Its Limits)
A handful of providers do sell optional pest control riders you can add to your plan. First American Home Warranty, for example, offers subterranean termite treatment as an add-on for new home buyers. But the fine print matters. That coverage pays for treating active termites in your main home and garage only. It does not cover infestations in fences or decks. And critically, it does not cover any damage the termites caused before or during treatment.
Other providers that offer pest control riders often restrict coverage to common household pests like ants, roaches, or rodents, with termites requiring a separate specialized plan. Even when termites are included, these riders typically cap payouts per contract term, limit the number of treatment visits, and specify which treatment methods are allowed. If you’re dealing with a serious infestation, the coverage ceiling may not come close to the actual cost.
Homeowners Insurance Won’t Help Either
If you’re hoping your homeowners insurance policy picks up where a warranty leaves off, it almost certainly won’t. Most policies explicitly exclude termite damage and removal. Insurers classify termite infestations as a preventable maintenance issue, the same logic warranty companies use.
There is one narrow exception worth knowing about. If termites chew through electrical wiring and that causes a fire, your homeowners insurance may cover the fire damage, since fire is a covered peril under most policies. But the termite damage itself, and the cost of treating the infestation, would still be on you.
What a Termite Bond Covers Instead
The product actually designed to protect you from termites is called a termite bond. It’s a service agreement between you and a licensed pest control company. In exchange for an annual fee, the company inspects your property on a regular schedule (typically once or twice a year) and, if termites are found, treats the infestation at no additional cost.
Costs break down into two parts. The initial treatment or inspection runs anywhere from free to $1,500 or more, depending on whether active termites are already present. After that, annual renewal fees for a standard single-family home typically fall between $150 and $400 per year.
A basic termite bond covers re-treatment only, meaning you’re protected from paying for extermination again but not for repairing damaged wood, drywall, or flooring. For broader protection, you can upgrade to a bond with a damage warranty for an additional $100 to $300 per year. This type of bond covers the cost of repairing structural damage caused by an infestation that occurs while the bond is active. Most bonds will not cover pre-existing damage, infestations in detached structures unless specifically listed, or damage discovered after the bond has lapsed.
Inspections Before You Buy a Home
If you’re searching this question because you’re in the process of buying a home, the most important step you can take is getting a wood-destroying insect inspection before closing. This report, sometimes called a WDI inspection, NPMA-33 inspection, or termite letter, is an official document that states whether a property shows visible evidence of wood-destroying insects or their damage. Many lenders require one before approving a mortgage.
During the inspection, a licensed professional checks accessible areas like the attic, crawl space, basement, and exterior for signs of termites, carpenter ants, carpenter bees, and wood-boring beetles. They’re looking for mud tubes, small piles of sawdust-like debris (called frass), discarded wings, and visible wood damage. The report only covers what can be physically seen, so hidden areas behind walls or under flooring aren’t included. Buyers typically pay for this report, though the cost can be negotiated with the seller.
If the inspection turns up active termites or past damage, you can negotiate treatment or repairs as a condition of the sale, or walk away. Either way, you’ll know what you’re dealing with before a home warranty’s exclusions become your problem.
How to Actually Protect Your Home
Given the gaps in both home warranty and insurance coverage, your best defense against termite costs is a combination of prevention and a dedicated termite bond. On the prevention side, keep wood mulch, firewood, and lumber away from your foundation. Fix leaky faucets and ensure proper drainage around your home, since termites are attracted to moisture. Seal cracks in your foundation and keep crawl spaces ventilated and dry.
For ongoing protection, a termite bond with a damage warranty is the closest thing to insurance you can get for termite problems. The annual cost of $250 to $700 (combining the renewal fee and damage warranty upgrade) is modest compared to the cost of structural repairs if an infestation goes undetected. Replacing even a small section of damaged sill plate or structural framing can easily run over $1,000, and extensive damage to floor joists, wall studs, or support beams can cost many times that.
If you already have a home warranty, it’s worth checking whether your provider offers a pest control add-on that includes subterranean termite treatment. Just understand that you’re getting treatment coverage only, not damage repair, and only for your main structure. For most homeowners, a termite bond from a pest control company provides far more meaningful protection.