Are Home Termite Warranties Worth It?

[kyphysics]

You have to pay $100-$200/year. You get one annual inspection. IF you are found to have termites, they will only treat your house to kill the termites. They are not responsible for the damage done to your house. So, if in November 2020, your termite company inspects and sees no termites (or maybe they even missed them), but in December, the termites appear and eat up your house and it's only discovered in November of 2021 during the annual inspection, then the termite company only pays for the termite chemical treatment (usually worth about $800-$1,000).

If the damage done to your house by the termites was $30,000, you still owe that yourself for repairs.

Interestingly, most termite companies offer FREE annual inspections. Suppose you use them and even ask for multiple companies to do them every three or four months, so you get the full year well covered:

Tom's Termite Busters: January thru March
Logan's Bug Killers: April thru June
Joe's Exterminator Squad: July thru September
Bob's Pest Control: October thru December

Many companies will take pictures of alleged damage to verify with you too. So, without paying for a home termite warranty, you use four free company inspections every year. IF you really get termites, then you may actually even know sooner (as you're using four companies every three months) and what you saved on annual fees for a warranty you can then use toward your termite treatment. Any home damage isn't covered anyways, so you'd be paying the same there.

Thoughts on this logic?

 

[russ_watters]

Yeah, doesn't sound worth it to me. Google tells me termite damage costs US homeowners $5 billion a year, which is a really low number, equal to about $40 a year per home. This years' wildfires in California cost twice that in damage.

It's worth getting an inspection every now and then, watching for signs of issues, and checking if your location/climate is even a risk factor.
https://www.termitestreatment.com/distribution-of-termites-in-usa/

 

[kyphysics]

Yeah, doesn't sound worth it to me. Google tells me termite damage costs US homeowners $5 billion a year, which is a really low number, equal to about $40 a year per home. This years' wildfires in California cost twice that in damage.

It's worth getting an inspection every now and then, watching for signs of issues, and checking if your location/climate is even a risk factor.
https://www.termitestreatment.com/distribution-of-termites-in-usa/

Wait, when you say it's not worth it, are you saying it's not worth it to get a warranty or not worth it to do the multiple company free inspections alternative?

eta: Okay, reread your post for context. I think you mean it's not worth the warranty, given low probability of damage.

 

[kyphysics]

On a different topic, does anyone know if there is "global warming" flood insurance out there? Like if you live in some coastal city that's predicted to possibly go under in 10 years sort of thing.

 

[BillTre]

While the realtors want you to buy the land, the insurance companies will not want insure against something if it looks like to will happen (depending upon location).
Flood insurance is often difficult to get anyway (depending upon location).

One of my sisters lives in Florida about 1-3 feet above sea level.
I have been telling her to sell her house for more than ten years.

 

[kyphysics]

While the realtors want you to buy the land, the insurance companies will not want insure against something if it looks like to will happen (depending upon location).
Flood insurance is often difficult to get anyway (depending upon location).

One of my sisters lives in Florida about 1-3 feet above sea level.
I have been telling her to sell her house for more than ten years.

Some think the government may bailout property owners. If so, it seems arbitrary to tie it to a huge catastrophe (that people can see coming). What about Sally or Sue, whose homes were "affected" by the earlier stages of climate change, but not entirely destroyed? Maybe they had moderate flood damage, more pests than normal, and/or more global warming moisture-created fungus/mold problems they had to pay for.

I, too, would fear if I lived in Florida.

 

[BillTre]

I think that the government should withdraw any support for rebuilding after floods in those areas expected to flood (in some time period).
They could also change building code so new structures would not be built there.
This would lead to changes in patterns of new developments (construction) and tend to move things to safer locations.

Sadly, the local politics in many areas are strongly influenced by realtors and conditions they like for making money.
Many building codes, in turn are influenced by local politics.
National politics will be influenced by politicians for states that will be effected by sea level rise (lots of coastal states, lots of population in coastal states).
Vested interests can often restrain change in our political system.

 

[kyphysics]

Pretty depressing, but true.

 

[russ_watters]

Okay, reread your post for context. I think you mean it's not worth the warranty, given low probability of damage.

Yes.

 

[russ_watters]

Some think the government may bailout property owners.

It usually does.

I think that...

Agreed, agreed, agreed, agreed, agreed, agreed and agreed.

 

[strangerep]

It's worth getting an inspection every now and then [...]

Not unless you're prepared to go with the "inspector" into all the crawl spaces and watch carefully everything he does.

I saw a TV program where tiny hidden cameras were put in various spots in said crawl spaces, and then a "termite inspector" was called who offered "free inspections". He was filmed actually releasing some termites near some timber framework, and then showed the owner some termites he'd "caught" in there.

 

[kyphysics]

Yes.

I'd add, though, that sometimes a "free inspection" company can be staffed by untrustworthy "salesmen" inspectors. I'd go for the ones that take pictures and show you proof (you can ask what their policy is and/or Google them online to see which ones do this) and can then explain them logically***.

Sometimes, you can bring in a whole different incentive structure with free inspections. How many people have termites? If your inspector guy goes to 10 houses a day and all 10 are free inspections, then how many times does he have to find termites to make it worthwhile? Might such a person be tempted to lie and come up with a bogus report?

***I've heard an inspector say - off-the-record - that sometimes inspectors will use the screwdriver scrapings they caused themselves (to check for wood integrity) to say you have termites and/or need to have that wood piece repaired/replaced. This would be a lie and something they themselves caused (possibly chipping/scraping a little extra deep to create a more "damaged" look). So, sometimes it can be hard to even know what you're looking at in a picture.

 

[kyphysics]

Not unless you're prepared to go with the "inspector" into all the crawl spaces and watch carefully everything he does.

I saw a TV program where tiny hidden cameras were put in various spots in said crawl spaces, and then a "termite inspector" was called who offered "free inspections". He was filmed actually releasing some termites near some timber framework, and then showed the owner some termites he'd "caught" in there.

I'm surprised a "competitor" hasn't come up with the idea of video-taped inspections. That solves a lot of the trust issues. Sure, there can still be legitimate differences of opinion on whether something is wood rot from fungus vs. beetles or what not and whether some damaged piece of wood needs replacing (e.g., it's just cosmetic damage and not structural to where you risk your house collapsing), but at least you know what they're doing down there.

You could charge a premium for these video-taped inspections.

re: "free" vs. warrantied inspections
Even with a termite contract, where you're paying an annual fee, the inspector can have unsavory motives to say you don't have termites. They have to treat it with chemicals if you do. They could presumably save money and let your house rot for a year. Use the "float" on the money to earn interest or do whatever with it. If you get $15,000 worth of termite damage from 2020 to 2021, that's all on YOU (recall that termite contracts never cover damage - only the chemical treatments).

The whole industry gives me feelings of distrust. It reminds me of cheating car mechanics/repairmen and house repair contractors. Lots of stories of made up problems to get you to buy unnecessary services.

 

[Evo]

I think that the government should withdraw any support for rebuilding after floods in those areas expected to flood (in some time period).
They could also change building code so new structures would not be built there.
This would lead to changes in patterns of new developments (construction) and tend to move things to safer locations.

Sadly, the local politics in many areas are strongly influenced by realtors and conditions they like for making money.
Many building codes, in turn are influenced by local politics.
National politics will be influenced by politicians for states that will be effected by sea level rise (lots of coastal states, lots of population in coastal states).
Vested interests can often restrain change in our political system.

I remember when I was around 11 years old, my parents were looking for a nearby vacation home to buy (We lived in Houston, TX), they looked at some new beach homes on Galveston Island, they were fairly close to the water, I mean we would have a nice stretch of private beach directly in front of the house, maybe 60 feet? I told the realtor that I didn't think the homes would withstand one of the frequent hurricanes. The realtor brushed me off citing the "stilts" the homes were built on, so any flooding would go UNDER the house. I said yeah, washing the home away.

We did not buy a house there, instead we found land on a lake inland and placed a house there.

A year later, a hurricane came through, that ENTIRE set of beach houses were destroyed, the new water line went through were the homes had been, the lots were now under water, A complete loss for anyone that bought there. We went there and everything was gone. Our lake home was fine.

 

[Evo]

Not unless you're prepared to go with the "inspector" into all the crawl spaces and watch carefully everything he does.

I saw a TV program where tiny hidden cameras were put in various spots in said crawl spaces, and then a "termite inspector" was called who offered "free inspections". He was filmed actually releasing some termites near some timber framework, and then showed the owner some termites he'd "caught" in there.

A well known "termite" company showed up at my parents door once and showed them termites, quoted my mom a "special to rid our home of termites". She laughed and told them the termites might have been on the trees (we lived in a heavily wooded area) but that we happened to have a steel frame and brick house, the entire street was all steel frame homes. So unless the termites could eat steel, we were fine, thank you. I don't know how my father found the builder for the steel frame homes, rather unique.

 

[BillTre]

I told the realtor That I didn't think the homes would withstand one of the frequent hurricanes. The realtor brushed me off citing the "stilts" the homes were built on, so any flooding would go UNDER the house. I said yeah, washing the home away.

We did not buy a house there, instead we found land on a lake inland and placed a house there.

Good decision, rationality over realtor hype!

A complete loss for anyone that bought there.

But the realtors did fine.
They might now be able to sell the properties behind the destroyed ones as waterfront.

 

[strangerep]

A well known "termite" company showed up at my parents door once and showed them termites, quoted my mom a "special to rid our home of termites". She laughed and told them the termites might have been on the trees (we lived in a heavily wooded area) but that we happened to have a steel frame and brick house, the entire street was all steel frame homes. So unless the termites could eat steel, we were fine, thank you.

If the salesman was a quick witted enterprising type, his next move should have been to call on other houses in the street and offer to inspect for rust. (Gal coating doesn't last forever, especially if it's only sprayed on rather than hot-dipped.) He could then offer something like the dubious "extra rust-proofing treatment" that car dealerships often to use for up-selling buyers of new cars.

I don't know how my father found the builder for the steel frame homes, rather unique.

Well, these days steel companies sell kit homes, extensive framing systems, etc. I've seen several new houses here at Sanctuary Cove that are built like this.

Curiously, some of the steel frames are blue (a "zinc-rich coating", they say) which I've seen starting to rust after only 1-2 years of exterior exposure. Sprayed-on gal lasts a bit longer. I surely don't know why our governments won't mandate hot-dipped gal for this purpose. Framing doesn't need to look pretty.

Even here in Sanctuary Cove, one house construction was started with framing in the blue-green pine (i.e., hazard rating only H2). The owner got into financial strife partway through, and the bare skeletal frame of the house sat out in the weather for over a year. By that time, the framing degraded to a really bad condition.

 

[strangerep]

I'm surprised a "competitor" hasn't come up with the idea of video-taped inspections.

But who would be doing the video taping?

I reckon money+time would be better invested understanding exactly what materials are used in the construction, and their various properties. E.g., not all species of "hardwood" are highly durable against insect attack, even though they're strong. Similarly, not all levels of "treated" pine are equal.

 

[strangerep]

[...] rationality over realtor hype!

Ah, that's one of the important maxims to live by: "Don't believe a word an agent says."

 

[kyphysics]

But who would be doing the video taping?

The inspector wearing a gopro/bodycam type of thingy.

You could charge $200 for an inspection with video perhaps. Do 5 a day and that's $1,000.

 

[strangerep]

The inspector wearing a gopro/bodycam type of thingy.

But then he could aim the camera in a different direction while he surreptitiously releases some termites...

 

[kyphysics]

But then he could aim the camera in a different direction while he surreptitiously releases some termites...

Haha. Fair enough. I suppose if someone were that deceitful, then I'm just going to have to get taken on the termite treatment. Unless I'm mistaken, there is NO HARM to have them treat termites if you don't have any right? As in, the chemicals wouldn't hurt your soil, health, etc. Money lost aside, a person could get a termite treatment for their property and not have any unintended bad consequences, right, if there actually weren't any termites?

In that case, I feel it'd be worth the risk/reward of paying more for a video inspection. The main thing is, you can see what your own crawl space looks like without getting all nasty. Most people don't want crawl in there. And the termite man cannot trick you on saying your wood is damaged and needs fixing when it's not. ...UNLESS you think he'd be skilled enough to point the camera in one direction and take a hammer and bust up your wood and say you need it fixed. That'd be some serious skills and physical coordination. My default thought was that the camera could be helmet mounted and be pointed whever the guys face was facing.

 

[Evo]

You can hire an independent "home inspection" company, like the ones that Realtors use to inspect a home considered for purchase, they will make a complete, honest evaluation of the home, noting any problems, they are not associated with companies that fix the problems, nor will they recommend anyone (Or they SHOULDN'T), so this way you will know if you have problems, they will also take pictures and video, they are a few hundred dollars and will check EVERYTHING!

 

[Vanadium 50]

(In best Mr. Haney voice) "Ma'am, you sure are right. These termites are defective, but since they are still under warranty, I have replaced them with brand new termites. You'll be swimming in sawdust in no time!"

 

[strangerep]

You can hire an independent "home inspection" company, [...]
they [...] will check EVERYTHING!

I used one of those guys to inspect my previous (Sydney) home pre-purchase, and learned a few hard lessons in the process...

It's essential to be there when they're doing the inspection, and actually crawl around with them wherever they go, and probe with specific questions on the spot. I didn't do this, and their final report said rather broad things like "the timber is in really bad condition" -- which blind Freddy could easily see from the outside. But they didn't say how structurally bad it was, since that's not always apparent from a simple visual inspection and some tapping. That allowed me to think "oh, it just needs a good paint job".

Also, they failed to detect carpenter ants, which behave differently from ordinary termites. The structural integrity of some of (very large) main bearers was maybe only 5 yrs from failing.

Ah well. I certainly learned a lot about nontrivial house repairs during the 14 yrs I endured in that place. I now laugh at some of the houses around here which have lots of exterior timber.

 

[strangerep]

Unless I'm mistaken, there is NO HARM to have them treat termites if you don't have any right? As in, the chemicals wouldn't hurt your soil, health, etc.

Heh, if there aren't actual termites, they could just spray with water (and then boast about how eco-friendly, and safe for elderly people, their product is). Homeopathic insecticide...

 

[strangerep]

(In best Mr. Haney voice) [...]

On first scan, I read that as "Mr Hankey", and wondered why you didn't start with "Hi de HI!"

 

[Evo]

I used one of those guys to inspect my previous (Sydney) home pre-purchase, and learned a few hard lessons in the process...

It's essential to be there when they're doing the inspection, and actually crawl around with them wherever they go, and probe with specific questions on the spot. I didn't do this, and their final report said rather broad things like "the timber is in really bad condition" -- which blind Freddy could easily see from the outside. But they didn't say how structurally bad it was, since that's not always apparent from a simple visual inspection and some tapping. That allowed me to think "oh, it just needs a good paint job".

Also, they failed to detect carpenter ants, which behave differently from ordinary termites. The structural integrity of some of (very large) main bearers was maybe only 5 yrs from failing.

Ah well. I certainly learned a lot about nontrivial house repairs during the 14 yrs I endured in that place. I now laugh at some of the houses around here which have lots of exterior timber.

There are good inspectors and crappy inspectors. I got a REALLY GOOD one, thanks to my awesome realtor!

 

[kyphysics]

It's essential to be there when they're doing the inspection, and actually crawl around with them wherever they go, and probe with specific questions on the spot.

I could be wrong, but I'm guessing 99.999999% of people would not do this. Most people shudder at the thought of going into a nasty crawl space. Some have mold, dark standing water, spider webs, rat feces, etc.

That's probably why these dudes can trick people and make a lot of money if they're dishonest.

 

[kyphysics]

You can hire an independent "home inspection" company, like the ones that Realtors use to inspect a home considered for purchase, they will make a complete, honest evaluation of the home, noting any problems, they are not associated with companies that fix the problems, nor will they recommend anyone (Or they SHOULDN'T), so this way you will know if you have problems, they will also take pictures and video, they are a few hundred dollars and will check EVERYTHING!

Oh, interesting. That's good to know there are actually companies who do video. Helpful post.