A termite bond — also called a termite warranty, termite contract, or termite protection plan — is an agreement between a homeowner and a pest control company that provides ongoing termite protection after an initial treatment. It typically includes annual inspections and a commitment to retreat if termites return. Some bonds also cover repair costs for termite damage discovered during the warranty period.
Think of it as a service contract for your home's most expensive vulnerability. Termite damage costs U.S. homeowners an estimated $5 billion annually, and homeowner's insurance does not cover termite damage. A termite bond is your only financial protection.
Retreatment-only bond: The company guarantees to retreat your home at no additional cost if termites return during the warranty period. This is the most common and least expensive type. It covers the cost of retreatment ($1,500–3,000+ value) but does not pay for any structural damage the termites caused before discovery.
Repair bond (damage repair warranty): Covers both retreatment AND repair of structural damage caused by termites during the warranty period. This is significantly more valuable — and more expensive. Repair bonds typically have damage caps ($25,000–100,000 depending on the company and plan). This is the termite equivalent of comprehensive insurance.
Transfer bond: Some bonds are transferable to new homeowners when the property is sold. This adds value to the home sale and provides the buyer with existing protection. Not all bonds are transferable — check the terms before assuming.
Initial treatment: $1,200–3,500 for liquid barrier treatment (Termidor/Taurus SC) or $1,500–3,500 for bait station installation (Sentricon/Advance). This is a one-time cost.
Annual renewal: $200–400/year for a retreatment bond; $300–500/year for a repair bond. The renewal includes an annual termite inspection and maintains the warranty.
Cost of NOT having a bond: If termites return without a warranty, retreatment alone costs $1,500–3,000+. Structural repair can run $3,000–15,000+ for significant damage. A $300/year renewal that prevents a $5,000+ expense is straightforward math.
In low-termite-pressure regions (northern tier states with harsh winters), the risk is lower and the bond may be less critical. Steel and concrete construction with no wood-to-soil contact reduces (but doesn't eliminate) risk. If you're a confident DIYer willing to do your own annual termite inspections and maintain bait stations, you can save the annual renewal — but you're accepting the financial risk if termites appear.
For help evaluating termite protection companies, use our company review and license verification tool. Our termiticide comparison covers the differences between liquid barrier and bait system treatments.