No. Standard homeowners insurance (HO-3 and HO-5) does not cover termite damage. The exclusion is industry-standard across every major US carrier. Here is exactly how it works, the one narrow exception, and what to do instead.
The exclusion is consistent across every major US homeowners insurance carrier. Source for each: the standard HO-3 / HO-5 policy language and the carrier's consumer-facing FAQ on pest damage.
| Carrier | Policy | Termite damage covered? | Note |
|---|---|---|---|
| Progressive | HO-3 / HO-5 | Excluded | Pest / vermin exclusion is industry-standard language |
| Allstate | HO-3 / HO-5 | Excluded | Same as Progressive; maintenance-issue framing |
| State Farm | HO-3 / HO-5 | Excluded | Same exclusion; no endorsement available |
| Geico (via Homesite, Liberty Mutual etc) | HO-3 / HO-5 | Excluded | Geico underwrites via partner carriers; all apply the standard exclusion |
| USAA | HO-3 / HO-5 | Excluded | Same exclusion across all USAA homeowners products |
| Farmers | HO-3 / HO-5 | Excluded | Insect / vermin exclusion section identical across major carriers |
| Liberty Mutual | HO-3 / HO-5 | Excluded | No termite endorsement product offered |
| Nationwide | HO-3 / HO-5 | Excluded | Standard exclusion; consumer FAQ confirms |
Sources: each carrier's public-facing policy language and consumer FAQ pages. The exclusion is part of the ISO HO-3 standard policy form that the industry uses as a base.
If termites cause a separate covered peril, the resulting peril may be covered (but the termite damage itself isn't).
Classic example: termites chew through electrical wiring and the compromised wiring starts a fire. The fire damage falls under standard fire coverage. The termite damage that led to it does not.
Practical relevance: low. This exception requires the termites to cause a separately-covered peril and requires the homeowner to demonstrate the causal chain. Not a realistic financial protection plan for termite risk.
Covers: Free re-treatment if termites return after initial treatment
Doesn't cover: Repair of damage caused by termites
Best for: Homeowners who've had treatment and want recurrence protection
Covers: Re-treatment AND repair of new termite damage, capped (typically $250K-$1M)
Doesn't cover: Pre-existing damage at time of bond start; some bonds exclude subterranean OR drywood depending on tier
Best for: Homeowners in high-pressure states (FL, LA, TX, SC, NC, AL, MS, GA, AZ)
Covers: Limited termite damage repair (much narrower than a bond)
Doesn't cover: Most damage scenarios; re-treatment usually not included
Best for: Niche cases; most buyers should choose a termite bond instead
Covers: Nothing pre-funded
Doesn't cover: Everything
Best for: Homeowners with very low termite risk (cold-climate, masonry-only structures, no wood-to-ground contact)
For most homeowners in termite-pressure states, a termite bond at $300-$700/yr is the right financial backstop. The maths typically favours the bond once you factor in the probability and cost of recurring infestation.
No. Standard homeowners insurance policies (HO-3 and HO-5, which cover the vast majority of US single-family homes) explicitly exclude damage from insects, vermin, and pests. Insurers classify termite damage as a maintenance issue that is preventable through regular inspection and treatment, rather than a sudden or accidental event. This exclusion is industry-standard across Progressive, Allstate, State Farm, Geico, USAA, Farmers, and every other major US carrier.
No. There is no special endorsement, rider, or supplemental insurance product offered by major US carriers that adds termite-damage coverage to a standard homeowners policy. The exclusion is structural to the policy design and not optional. The only realistic financial protection is a termite bond (an annual contract with a pest control company) or a home warranty that explicitly includes termite coverage (rare).
If termites cause a separate covered peril, the resulting damage from that peril may be covered. The classic example is termites chewing through electrical wiring and starting a fire. The fire damage itself would typically be covered under the standard homeowners policy. However, the termite damage that led to the fire is not. This exception is narrow, factually demanding to prove, and not a realistic financial backstop for termite risk.
No. FHA, VA, and USDA loan programmes typically require a Wood Destroying Insect inspection report at closing in many states (the NPMA-33 form is the standard inspection document) but do not require ongoing termite insurance. The inspection identifies pre-existing infestation; ongoing protection is the buyer's responsibility post-purchase.
Yes, in practical terms. A termite bond is an annual contract with a pest control company that covers re-treatment if termites return after initial treatment, and on many bond tiers also covers some level of repair damages. Bond cost runs $150 to $500 per year for the re-treatment-only tier, and $300 to $700 per year for tiers that include a repair cap (typically $250K to $1M repair coverage). Bonds are the realistic financial protection homeowners use in place of insurance.
Most do not. Home warranties (American Home Shield, Choice Home Warranty, 2-10 Home Buyers Warranty) typically cover mechanical systems and appliances, not structural pest damage. A few warranty products offer a limited termite endorsement at additional cost, but the coverage is narrower than a termite bond from a licensed pest control operator. Most homeowners with termite risk should hold a termite bond, not rely on a home warranty.
No. The cost of termite treatment (whether liquid barrier, bait station install, or tent fumigation) is borne entirely by the homeowner under standard insurance. The exclusion is consistent: insurance does not pay for pest control, pest damage, or pest treatment.
If the seller knowingly concealed termite damage (failed to disclose an active infestation, or knowingly falsified a Wood Destroying Insect inspection report), there may be a legal claim against the seller and/or the inspector. This is a real estate dispute and not an insurance claim. Standard buyers' policies do not cover pre-existing termite damage discovered post-purchase.
No, with the same logic as standard homeowners insurance. Landlord (dwelling fire / DP-3) policies also exclude termite damage as a maintenance issue. Landlords typically hold a termite bond on rental properties as the practical alternative.