Does Homeowners Insurance Cover Termite Damage?
Termite and insect damage are typically not covered by standard homeowners insurance policies. However, in some cases, you may be able to obtain compensation.
When does homeowners insurance cover termite damage?
Because termites and other pests are considered preventable, most homeowners insurance policies will not cover damage caused by them. However, there are two situations in which your homeowners insurance will cover termite damage up to the policy limits:
- When the house is completely destroyed by termites.
- Termites are caused by a covered risk or peril.
Sudden house collapse
Your homeowners insurance policy would cover you if termites or other vermin cause your home to collapse unexpectedly. However, there are some prerequisites that must be met first:
- Your house collapsed, which means the structure collapsed and broke into pieces. This excludes cracking, shrinkage, bulging, expanding, sagging, and bowing.
- The termites were hidden and caused damage without anyone's knowledge. If you were aware of the infestation and did nothing to stop it, you are unlikely to be covered.
Cause of termites is something you're covered for
If the termite infestation is caused by a covered risk or peril, you may be covered.
- Moisture in the home, for example, is one of the leading causes of termites. Your policy may cover you if the moisture is the direct result of water damage caused by a pipe leak. Internal leaks are typically covered by standard homeowners insurance policies. This logic can be applied to other common covered perils such as fires, tornadoes, and wind damage.
These events can cause structural changes in your home and lead to termite infestations, but proving the direct link between the damage and the termites may be difficult. We recommend that you hire a professional to evaluate your claim.
You must also file a claim for the peril's initial damage.
- Assume strong winds rip shingles from your roof, resulting in a termite infestation. You should file a claim for the roof damage as soon as possible, and you should report the termites as soon as you find them. Leaving the shingles unreported is an act of neglect, and your insurance company may deny your termite claim.
Filing a claim when you're covered
Contact your insurer right away after consulting with a professional and determining you have a valid homeowners insurance claim. The company will dispatch a claims adjuster, who may conclude that the infestation was caused by neglect. The report from your inspector can be used to refute a professional's declaration that the infestation was caused by an uninsurable event.
- If you are covered, you are entitled to reimbursement up to the policy limits. The standard dwelling coverage for a house is around $250,000, but it can be higher for more valuable homes. If termites get into your personal belongings, such as electronics or musical instruments, insurers will only pay a certain amount. Policy specifics vary.
What to do if you have uninsurable termite damage
If your homeowners insurance policy does not cover termite damage, there are two major options for lowering the cost of pest removal.
- Hire a professional to inspect the termites and provide a removal estimate. If possible, obtain multiple quotes and compare them.
- Calculate the cost of removing the termites yourself based on the size of the infestation.
Termite removal costs can range from $500 to $5,000, depending on the extent of the infestation and the size of the home.
If you decide to handle the problem yourself, you must accurately assess the size of the infestation. If the entire colony is not removed, the damage will only worsen and become more expensive. In many cases, hiring a professional exterminator will be more expensive in the short term, but it will be a better long-term investment. A professional will ensure that the entire colony is completely eradicated and that it ceases to grow.
You will have to pay for the damage to your home on your own as well. To ensure you are getting the best repair prices, we recommend comparing quotes from several contractors.