Termite Contracts

Pest control companies sell either a “Termite Re-treatment” warranty or a “Termite Re-treatment and Repair” warranty. The “Termite Re-treatment” warranty promises repeat treatments if termites come back, but it does not offer compensation for termite damage. A “Termite Re-treatment and Repair” warranty provides both treatment and some type of compensation for termite damage. The amount of liability the pest control company assumes is usually specified in the agreement and varies from company to company.

Since a warranty is only as good as the company making it, make sure companies, especially smaller ones, have the proper insurance to back up the warranty. Some houses are not eligible for a “Termite Re-treatment and Repair” warranty because of uncorrected problem areas. In these situations, the problems must be fixed before the house can be eligible for this kind of warranty.

Termite contracts typically require a large first-year treatment fee to cover the cost of inspection and initial treatment and a much smaller annual maintenance fee to cover the ongoing annual inspections and liability. Because many termite control companies do not warrant other companies’ work, switching termite companies usually requires re-treating the house. Since the cost of re-treating is substantial, the best time to switch termite companies is at the end of term for the contract, not at an annual renewal.