Does a termite bond / insurance add value to your home at sale?

[Southlander]

In our old house (I mean 75-year-old at the time), we kept an active termite bond with yearly inspection. Cost about $75 when we first moved there and about $100 when we moved 20 years later.

We built our current house almost 12 years ago, with the required foundation treatment which, from what I understand, is supposed to last around 10 years. After a year or two, I canceled our monthly pest control termite (the guy was just creepy). Apparently they thought I was cancelled everything. I didn't realize until a couple of years later that they were not doing the yearly inspection.

So I call the company to renew. Oh no. They don't renew just any old house now. You have to buy their fancy-schmancy franchised termite control system, the kind with the green plugs in the ground all around the house. It costs $2,000+ to install, and something like $500 a year to be checked.
And it was the same story for the other 2 companies I called.

I must say...the original company was also involved in a lawsuit literally down the street (well, by a mile and a half). The lady had a bond on her house, and had it for years and years...the house had major termite damage and had to be completely torn down. Company finally paid off, but not without lawyers and court fees and lost time. She rebuilt, but a much smaller house.

Don't let your bond lapse.

[E Limestone Dude]

BTW, I did renew the bond. Decided this was not an area I should consider cutting back.

[Southlander]

Originally Posted by E Limestone Dude

BTW, I did renew the bond. Decided this was not an area I should consider cutting back.

Good, Dude.

[MSB256]

Wise decision I think.

[wallyjaz]

I just purchased a house in Tampa FL with a VA loan. A company did a termite inspection for the loan and said there were no termites. I am replacing windows in the house and found the 2nd floor exterior walls are infested with termites. I took some pictures of the damage, some of the 2x4's were completely gone inside. What recourse do I have.

[dijkstra]

If the second floor walls are infested that bad, you have major issues on the first floor. You most likely have extensive damage that could possibly cost in the tens of thousands to repair. I wouldn't even waste my time contacting the company that did the termite inspection because you are going to get the run around and lose valuable time that you can't afford to lose. Get an attorney and have him contact the company. They will know you mean business from the beginning and you may get a resolution quicker.

[Dirt Grinder]

Originally Posted by dijkstra

If the second floor walls are infested that bad, you have major issues on the first floor...

Not necessarily, it might not be a subterranean termite infestation - it could be a drywood termite. Drywood termites don't need soil contact and are common in Florida.

[dijkstra]

Good point, we don't really have a problem with those in my location so it didn't even cross my mind. After doing some reading, I don't even know if there would be any recourse with an infestation of drywood termites as they normally aren't even discovered until remodeling or repairs are done as in this case. I would still talk to an attorney, probably one specializing in real estate transactions.

[wallyjaz]

I spoke with the guy that did the inspection, pathetic. "We do a visual inspection, we cannot be held liable, blah, blah, blah". I called a lawyer. They are subterranean termites.