Does Homeowners Insurance Cover Termite Damage?

By Jon Merwin, Founder and CEO, Licensed Insurance Advisor

Short answer: no, in almost every case. A homeowners policy is designed for damage that happens suddenly and by accident, like a kitchen fire, a burst pipe or a tree coming down in a windstorm. Termites work slowly and out of sight, sometimes for years, and insurers see keeping them out as part of owning a house. So repairs and extermination fall to the homeowner, with one narrow exception and a few related cases covered below.

Portsmouth Atlantic Insurance is an independent, family-owned agency in Portsmouth, New Hampshire, and we compare coverage from 40+ carriers for homeowners across New England. Our clients have left us 1,000+ Google reviews and over 2,000 testimonials, and our team has 200+ years of combined experience. Questions about bugs in the walls come up most in spring, when swarms appear, and during home sales, when an inspector finds old damage. Here is how we explain it.

Why insect damage is left out of homeowners policies

Most homeowners policies cover the house itself on an open peril basis: any cause of physical damage is covered unless the policy excludes it. The catch is the exclusion list, which names slow, predictable causes the insurer won’t take on. Insects are on it. The list typically includes:

• Wear and tear, marring and deterioration
• Mechanical breakdown, latent defects and inherent vice
• Rust, corrosion, mold and wet or dry rot
• Settling, shrinking, bulging or expansion of foundations, walls and floors
• Birds, rodents and insects, and in many newer forms, nesting or infestation by animals

Insurers draw the line there because insect damage builds up over months or years with no single sudden event, and because inspections and pest control, which they see as the owner’s job, can usually prevent it or catch it early.

Your belongings follow a similar rule. Personal property is usually covered only for a list of named perils such as fire, theft and windstorm, and insects aren’t on that list. Boxes of books chewed up in the basement or a wooden antique riddled with beetle holes generally aren’t covered. For the bigger picture, see our overview of what homeowners policies usually cover.

What the policy will and won’t pay for, at a glance

How standard forms usually handle the insect situations we hear about. Wording differs by carrier, so treat this as a general guide.

Situation	How a standard policy usually responds
Termites ate through sill plates, joists or framing	Not covered; insect damage is excluded
Cost of termite treatment, baiting or a service plan	Not covered; treated as maintenance
Carpenter ants nesting in damp wood under a window or porch	Not covered for the ant damage; a sudden covered water leak that soaked the wood may be handled as its own claim
Powderpost beetles in floorboards, beams or furniture	Not covered
Part of the house suddenly falls in because of hidden insect damage nobody knew about	Often covered under the collapse additional coverage
Floor sags or walls crack from insect damage, but nothing falls in	Usually not covered; most forms say sagging, cracking and bulging aren’t collapse
Old termite damage turns up during a renovation or a home inspection	Not a claim; the damage is excluded, and collapse coverage doesn’t apply once it’s known
Squirrels or mice chew wiring and a fire starts	The chewing is excluded, but the fire that follows is usually covered

The exception: collapse from hidden insect damage

Most homeowners forms include a section called additional coverages, and one of them is collapse. In the common standard forms, collapse coverage pays for an abrupt falling down or caving in of a building, or part of one, caused by a short list of things. Hidden insect or vermin damage is on that list, next to hidden decay, the weight of people and contents, rain collecting on a roof, and defective materials used during a renovation that is still underway.

Three conditions trip people up:

• It has to actually collapse. The forms define collapse as an abrupt falling down or caving in that leaves the building, or the part that fell, unusable. A building that is standing, or one that is only in danger of falling, doesn’t count, even if it shows cracking, bulging, sagging, leaning or settling.
• The damage has to be hidden. If termite damage was visible, the insurer can argue it wasn’t hidden.
• Nobody in the home can have known about it. Most forms remove this coverage when an insured knew about the insect damage before the collapse. Once an inspector or contractor points out termite damage, the clock on this exception has effectively run out until the damage is repaired.

Collapse coverage also doesn’t add any money to your dwelling limit, and many forms leave out things like decks, patios, fences, foundations and retaining walls unless they were damaged because the building itself collapsed. Qualifying termite claims are uncommon, but a porch roof or section of floor that drops without warning is exactly what this coverage was written for.

Termites, carpenter ants and powderpost beetles in New England

When clients say they have termites, it’s sometimes another wood pest. The insurance answer is the same for all of them, but the fix for your house differs.

Subterranean termites

Rutgers Cooperative Extension’s termite fact sheet notes that all naturally occurring termites in the northeastern United States are subterranean termites. They nest in the soil and travel up into wood that touches the ground or stays damp, often building pencil-thin mud tubes along foundations to reach it. The same fact sheet says swarms of winged termites usually appear on warm, sunny days between April and June, and that this is when most homeowners first notice them. It also notes that northeastern infestations almost always start from outside the house.

Termites eat wood from the inside, so a sill or joist can look fine and still sound hollow when tapped. That slow, hidden progress is why insurers treat it as a maintenance risk.

Carpenter ants

The University of New Hampshire Extension’s carpenter ant fact sheet calls carpenter ants, along with termites, the most troublesome structural pest in New Hampshire. Carpenter ants don’t eat wood the way termites do. They dig galleries to raise their young, and they strongly prefer damp wood, which is why they turn up in porch columns, window and door frames, sills and the wood below leaking gutters. Their galleries are clean and smooth, while termite galleries are packed with a mud-like material.

That moisture link matters for insurance. Carpenter ants are often a sign of a water problem. If a sudden, accidental leak, like a pipe that burst, soaked the wood, the water damage from that event may be a covered claim on its own. A slow drip that went on for months, the rot it caused, and the ant damage that followed generally aren’t. Our guide to mold and homeowners insurance explains how long-term moisture is handled.

Powderpost beetles

The University of Maine Cooperative Extension’s fact sheet on firewood and insects says powderpost beetles can ride into a home on firewood and go on to infest the structure, furniture and wooden tool handles. The telltale sign is fine, flour-like wood dust below small holes in the wood. With so many homes here heating with wood, firewood storage matters.

Where termites show up in the region

Termite pressure isn’t the same everywhere in New England. The University of Maine Cooperative Extension’s pest guidance describes termites as rare in Maine, mostly found in pocket areas in some southern and coastal spots. A termite finding on an inspection report is more likely in Massachusetts, Rhode Island and southern New Hampshire than in northern New Hampshire or Vermont. Carpenter ants, on the other hand, are common throughout the region.

Why older New England homes need a closer look

Much of the housing stock here is old, and older homes have more of the conditions wood pests like. If you own an antique Cape, a farmhouse or a Victorian, a few spots deserve attention:

• Sills on stone foundations. Many older homes have wooden sill beams resting on fieldstone or granite foundations, sometimes close to the soil and often damp. That is prime territory for both termites and carpenter ants.
• Porches, steps and additions. Wood posts set in the ground, porches built later without proper flashing, and additions that sit low to the grade give pests an easy path in.
• Damp basements and crawl spaces. Moisture from spring thaw and poor drainage keeps wood wet, which carpenter ants need and termites like. Our post on basement flooding and insurance covers the water side of that problem.
• Firewood, mulch and gardens against the house. Stacked wood along a foundation and thick mulch beds touching siding give insects both food and cover.
• Seasonal homes and camps. A lake camp or summer cottage that sits empty for months can host an infestation that nobody notices until spring.

Owners of historic homes can find more on how insurers look at them in our older and historic home insurance guide for New Hampshire and our post on historic home insurance in Portsmouth.

Buying or selling a home with termite history

Termite damage comes up most often during a home sale. Buyers commonly order a wood-destroying insect inspection along with the general home inspection, and some lenders ask for one. If the report shows active termites or past damage, that is a negotiating point between buyer and seller, not an insurance claim.

What we tell buyers:

• Get the paperwork. Ask the seller for treatment records and any pest control service agreement, and whether it transfers to you. Rutgers notes a proper soil treatment can stay effective for more than five years.
• Find out what was repaired. Treatment kills the insects, but it doesn’t fix weakened wood. Ask whether damaged framing was replaced or reinforced.
• Tell your agent. When you apply for a policy, carriers may ask about the home’s condition. Known structural problems that haven’t been fixed can affect which carriers will write the home, so it helps to share the inspection report up front.
• Remember the collapse rule. Once you know about insect damage, the collapse coverage described above generally won’t apply to it. Getting repairs done is the real protection.

For more on the buying process, see our tips for first-time home buyers and the New Hampshire home buying guide.

Termite bonds and pest control service agreements

A termite bond is a service contract with a pest control company, not an insurance policy. The term is more common in the South, and here you may hear it called a termite warranty or service agreement. Contracts vary. Some cover only inspections and re-treatment if termites return; others also pay for repairs of new damage up to a stated limit, usually with conditions like yearly inspections.

Before signing, check whether it includes repairs or only re-treatment, the repair limit, whether existing damage is excluded, and whether it transfers when you sell. Since homeowners insurance won’t pay for termite repairs, this contract is often your only backstop.

If you find termites or other wood pests

• Don’t rush. Termite damage builds slowly, so take time to get good advice.
• Confirm what you have. Winged termites and winged ants look alike. Termites have straight, beaded antennae, wings of equal length and no pinched waist; ants have elbowed antennae, a narrow waist and front wings longer than the back ones.
• Talk to more than one licensed pest professional about soil treatment versus bait stations, how long it lasts and whether a service agreement comes with it. Extension specialists advise against do-it-yourself termite treatment.
• Have damaged wood checked by a contractor.
• Find the moisture source, such as leaky gutters, a grade sloping toward the house or a plumbing drip.
• Call us if anything gave way suddenly. If part of the structure actually fell in, or if a separate covered event like a burst pipe is involved, let us know. We’ll help you sort out what may be claimable before you start tearing anything out.

Not sure a related claim is worth it? Our post weighing the pros and cons of filing a homeowners insurance claim can help you decide.

Keeping wood pests out

Prevention is where you have the most control, and much of it overlaps with keeping water away from the house. Drawing on the Rutgers and UNH fact sheets:

• Keep wood from touching soil. Rutgers suggests keeping any wood in the structure at least 6 inches above the ground and using treated wood where it has to sit in a damp spot.
• Store firewood off the ground and away from the foundation, and bring only a small supply indoors at a time.
• Pull mulch back from siding and keep shrubs and vines trimmed away from the walls.
• Make sure gutters and downspouts carry water away from the foundation, and fix plumbing and roof leaks promptly. See our post on roof leaks and insurance.
• Keep crawl spaces, basements and attics ventilated and as dry as you can.
• Remove old stumps and buried wood near the house.
• Look around the foundation, sills, porch and basement once a year for mud tubes, hollow-sounding wood, sawdust piles or wings on windowsills, and consider a yearly professional inspection if your area has termite activity.

Carriers that inspect a house often look at the foundation and exterior wood too; our post on home insurance inspections explains what they check.

Questions to ask about your own policy

• Does my policy include collapse coverage, and how does it define collapse?
• Does the collapse coverage include hidden insect damage and hidden decay?
• How does my policy treat water damage when the cause also involves rot or long-term moisture?
• Is mold coverage limited, and to what amount?
• Would my dwelling limit cover a full rebuild at today’s construction costs?

We’re happy to work through these with you at no cost. We shop homeowners coverage with multiple carriers for homes in New Hampshire, Massachusetts and elsewhere in New England. Our replacement cost estimator gives a rough rebuild figure to compare with your dwelling limit, our explainer on reading your declarations page shows where each coverage appears, and a policy review puts a second set of eyes on the whole thing.

Wondering whether your own policy includes collapse coverage? Email us a copy of the declarations page and policy form, and we’ll point you to the right section.

Frequently asked questions

Does homeowners insurance cover termite damage?

Almost never. Standard homeowners policies exclude damage caused by insects, along with wear and tear, deterioration and rot, because it develops slowly and can usually be prevented. The cost of termite treatment is treated as maintenance and isn’t covered either.

Is there any situation where termite damage is covered?

The main exception is collapse. Many homeowners forms cover an abrupt collapse of the building, or part of it, caused by hidden insect damage that no one in the home knew about beforehand. Sagging, cracking or a building in danger of falling doesn’t count, and the termite damage itself is still excluded.

Does homeowners insurance pay for termite treatment?

No. Inspections, soil treatments, bait stations and pest control service plans are considered part of maintaining the home, so a homeowners policy doesn’t pay for them. A service agreement with a pest control company is the usual way to budget for treatment.

Is carpenter ant damage covered by homeowners insurance?

Generally no. Carpenter ant damage falls under the same insect exclusion as termites. Carpenter ants prefer damp wood, though, so if a sudden, accidental leak such as a burst pipe soaked the wood, the water damage from that event may be covered as a separate claim.

What is a termite bond, and is it insurance?

A termite bond is a service contract with a pest control company, not an insurance policy. Depending on the contract, it may cover inspections and re-treatment only, or it may also pay for repairs of new termite damage up to a set limit. Read the terms, including whether it transfers when the home is sold.

What should I do if a home inspection finds termite damage?

Treat it as a repair and negotiation issue, not an insurance claim. Ask for treatment records and any transferable service agreement, have a contractor check damaged wood, and share the report with your agent when you apply for coverage. Call us at (603) 431-4020 if you want help sorting out how it affects your policy.

Sources

• Rutgers Cooperative Extension FS338: Termite Prevention and Control
• University of New Hampshire Extension: Carpenter Ants fact sheet
• University of Maine Cooperative Extension Fact Sheet #5019: Firewood and Insects

Already a client and have a coverage question? Visit our Service Center or send a policy change request.

We wrote this as a general explainer. It is not legal advice, and nothing here is an offer to insure. Coverage for any insect-related loss turns on the exact policy form and endorsements a carrier uses, that carrier’s underwriting, and what actually happened. Your own policy controls, and we can help you read it.