Insurance covers termites…..Right?
In Australia, you have a one in four chance of being targeted by termites.
Often when people get house insurance, they overlook the small details that can make a big difference. It is a common misconception that your house insurance will cover any damage of termites. This is unfortunately false. Insurance companies often will not make an effort to point out such things, as termite damage is seen as a preventable form of damage, and usually will only acknowledge and cover this sort of damage if action has been taken to prevent the damage.
In most cases termite damage can end up costing you around $7,000, but depending on the extent of the damage could end up being in the the tens of thousands.
Other ways you may be able to benefit from your insurance is if termite damage resulted in a structural beam giving way and the roof of your house, or subfloor collapses causing further damage. Most insurance companies tend to cover what is known as collateral. A storm blows off the roof, or a truck drives through your garage. These are considered collateral, but unfortunately termite damage is not.
Other solutions
If your insurance doesn’t cover this kind of damage, there is still an option that doesn’t involve tangling with a new insurance company. This is known as a termite bond. A termite bond is a contract organized with a pest company that means they will perform regular inspections and treatment on the property, so many times per year. If any damage is done by termites in the time that the bond is in place, the company will pay the expenses. However keep in mind what kind of pests are involved in a termite bond, as not all termites are covered in the contract.
A cheaper solution to this would be to get a simple pest inspection done on your home. This will tell you all that is necessary to know if your home has termites, including what kind of actions you can take in terms of treatment, and suggestions if you need to get a portion of the house fixed.
This would also be a good thing to do before you decide on what kind of insurance to get for your home. There is no sense in going the extra mile to see if a company can cover you for termites if you are in an area that is unlikely to have an infestation. Consider where you are, what your house is made of and how much money you have when making an expensive decision.
The bottom line is, know what you’re covered for and what you’re not. Being a regular exclusion, if you are going to assume something about termites, you are better off assuming you’re not covered!
