Termite Bond Cost: What the Annual Warranty Really Buys

Direct answer: A termite bond is a warranty, and in 2026 it typically starts with a treatment priced at $1,200–$2,500, then renews at $200–$400 per year. A standalone bond on an untreated home usually requires an inspection and, in most cases, a treatment first. The only bond worth a real premium is retreat plus repair, and you must read the damage cap and the lapse clause. Prices vary by region and company.

Termite Bond Cost: What the Annual Warranty Really Buys

Termite bonds are common in termite country because they transfer risk from the homeowner to the company — but only within the bond’s terms. The annual renewal is not just insurance paper. It usually buys an annual inspection and the company’s obligation to re-treat if termites return. Whether it buys repair money depends on the bond type.

The two bond types, priced honestly

A retreat bond obligates the company to re-treat if termites return. That is useful, but it does not pay to fix damaged wood, drywall, or trim. A retreat-plus-repair bond adds damage coverage. That is the only version worth a premium, and the premium is only worth it if the damage cap is meaningful and the exclusions are clear. Read the cap: a $10,000 cap with broad exclusions is not the same as full repair coverage. Read the lapse clause: miss a renewal year and repair coverage can die.

Ask whether the bond covers new damage only or existing damage. Ask what happens if the company finds termites during the annual inspection. Ask whether the bond is transferable at home sale and what the transfer fee is. In termite country, a current bond is a selling point and a lapsed bond is a red flag.

Transfer at home sale

Bonds are transferable value in termite country. Sellers advertise them; buyers should verify that the bond is current and what type it is. A retreat-only bond is not the same as a retreat-plus-repair bond. A bond that lapsed two years ago may require a new inspection and treatment before it can be reinstated. Request the bond documents, the renewal receipts, and the most recent inspection report.

What voids bonds

• Unreported construction changes — additions, decks, or renovations that disturb the treated zone.
• Unfixed conducive conditions — leaks, wood-to-ground contact, or poor drainage left in place.
• Missed inspections or renewals — the lapse clause can end coverage.
• Failure to report activity — if you see termites and do not call, the company may dispute the claim.

Annual inspection reality

The renewal buys an inspection and the paper. Inspection quality varies. Be home for it. Ask where the inspector checked, whether moisture was measured, and whether any activity or conducive conditions were documented. A five-minute walkaround is not the same as a thorough inspection of the garage, crawlspace, siding, and interior wall bases. If the report is vague, ask for details.

Termite treatment and bond work must follow the product label and state licensing rules. Protected species or wildlife issues discovered during the inspection require legal handling by the appropriate professional. Prices vary by region and company.