What to Do If Your Termite Bond Isn't Being Honored

What Is a Termite Bond?

A "termite bond" is the common name for a termite protection contract between a homeowner and a pest control company. Despite the name, it's not insurance — it's a service contract that obligates the company to treat and inspect your home for termites on an ongoing basis.

When people say their "bond wasn't honored," they typically mean: the company is refusing to pay for repairs, claiming the damage isn't covered, offering an insultingly low settlement, or simply not responding to the claim at all.

Retreatment Bond vs. Repair Bond

Retreatment-only bond

The most basic type. The company agrees to retreat your home if termites are found, but does not agree to pay for any damage. If you have this type and discover damage, the company's only contractual obligation is to come back and treat again.

However — and this is important — a retreatment-only bond does not protect the company from a negligence lawsuit. If the company's failure to properly treat or inspect your home caused the damage, they can still be held liable regardless of what the bond says.

Repair bond (damage repair guarantee)

This type includes a promise to repair damage caused by termites. Repair bonds cost more and offer broader protection. If termites cause damage despite treatment, the company is contractually obligated to pay for repairs.

In practice, even companies with repair bonds routinely try to minimize or deny claims. They'll argue the damage is "cosmetic," claim it's a "new infestation" not covered, or hide behind fine-print exclusions.

Common Reasons Companies Refuse to Pay

• "The damage is pre-existing" — claiming the damage occurred before their contract began
• "It's a different species" — arguing that the bond only covers certain types of termites
• "You had conducive conditions" — blaming you for moisture, wood debris, or landscaping issues
• "The damage is cosmetic, not structural" — minimizing severity to reduce their payout
• "Your annual inspection wasn't completed" — even though they're the ones who were supposed to schedule it
• "Our liability is limited to $X" — pointing to a cap buried in fine print

Why Limitation Clauses Often Don't Hold Up

Many termite bonds contain clauses attempting to limit the company's liability — sometimes to as little as $1,000 or "the total amount of premiums paid." Under Mississippi law, these limitation-of-liability clauses are frequently found to be unconscionable and therefore unenforceable. Courts recognize the significant imbalance of bargaining power between a large pest control company and an individual homeowner.

What You Should Do

1. Do not accept any offer without first consulting an attorney — the company's first offer is almost always far less than you're entitled to
2. Do not sign any release forms — companies often condition small payments on you waiving all future claims
3. Consult an attorney to have your rights explained — we can review your bond and tell you what your case is worth
4. Preserve all documents — your bond, renewal receipts, inspection reports, and any written communication
5. Do not allow remedial treatment until an independent expert has examined the damage