What most homeowners and lenders call a termite bond is a termite service contract: a renewable agreement for a yearly inspection and retreatment if termites come back, sometimes with repair of new damage. In the regulators’ sense a bond is something else, a surety the pest company posts. Here is what each one costs, what the law in six Southern states makes the contract say, and whether the numbers work for your home.
Renewal / yr (compiled)
$150-$500
HomeGuide
Start-up (compiled)
$500-$2,500
HomeGuide
Published liquid renewal
$175-$200
Walker Pest Management, SC
Terminix repair cap
$250,000
Lifetime of plan
In everyday use, a termite bond is a written, renewable contract between you and a licensed pest control company. After the first treatment, you pay a yearly fee; the company inspects the house each year and treats again if termites return. Some contracts also pay to repair new termite damage, up to a limit stated in the contract. That is the sense a lender usually means when it asks for one.
Strictly, that is a contract, not a bond. Terminix’s own explainer says a bond is “simply a fee that a pest control company pays to a regulatory agency”, and that when a lender asks for a bond it “is really looking for a termite agreement or a termite contract” (Terminix, last modified 30 Jul 2024, checked 13 Oct 2026). The regulators’ own wording is more exact. Louisiana’s rules define a bond as a written instrument from a bonding, surety or insurance company guaranteeing that the company fulfils its agreement with its customer. Mississippi makes every company licensed for insect control post a surety bond of at least $5,000. Georgia does not require one at all unless a company advertises itself as bonded. In each case the bond protects customers if the company fails; it is not the thing you renew each year.
This page uses “termite bond” in the everyday sense, because that is what you are being asked to buy or renew, and says “surety bond” when it means the regulators’ kind.
Three different documents get called a “termite bond” around a house sale. They do different jobs, and only one of them is something you pay for every year.
The letter
The bond
The contract
Orkin publishes termite install prices but no renewal price, and Terminix publishes neither (Orkin price page and Terminix explainer, both checked 13 Oct 2026). So the national figures below are compiled estimates from cost guides, labelled as such, alongside the one operator we found that publishes its own renewal prices.
| Cost component | Range | Source and type |
|---|---|---|
| Starting a contract (treatment plus first year) | $500-$2,500 | HomeGuide, compiled estimate (updated 22 Nov 2025), checked 13 Oct 2026 |
| Annual renewal | $150-$500 | HomeGuide, compiled estimate (updated 22 Nov 2025), checked 13 Oct 2026 |
| Termite bond, average total | $500-$2,000 | LawnStarter, compiled estimate (updated 5 Oct 2026), checked 13 Oct 2026 |
| Liquid treatment warranty renewal | $175-$200 a year | Walker Pest Management (SC), published price (page updated 16 May 2025), checked 13 Oct 2026 |
| Bait station renewal and monitoring | $4 per linear foot, usually $360 a year minimum | Walker Pest Management (SC), published price (page updated 16 May 2025), checked 13 Oct 2026 |
| Real estate inspection report (the letter) | $100-$325 | HomeGuide, compiled estimate (updated 22 Nov 2025), checked 13 Oct 2026 |
Compiled estimates are the cost guides’ own ranges, quoted unchanged; neither guide publishes its sample. We used to show a $150 to $300 basic and $300 to $500 premium split here; no source supports it, so it has been removed.
Alabama and Georgia make every termite contract with a guarantee print one of two statements, boxed, at the top of the first page; Florida and Mississippi require the same choice in bold. Find that statement first: it tells you which of these you are buying.
“This contract provides for retreatment of a structure but does not provide for the repair of damages caused by wood destroying organisms.” (Georgia Rule 620-6-.02)
“This contract provides for retreatment of a structure and the repair of damages caused by wood destroying organisms within the limits stated in this contract.” (Georgia Rule 620-6-.02)
No state sets the price of a termite contract. What the regulators set is what the contract must say, how often the house must be inspected, and what money the company must hold behind its promises. Each cell below is taken from the rule named under it, read on 13 October 2026.
| State and regulator | What the contract must say | Inspections, renewal and transfer | Company bond and insurance |
|---|---|---|---|
| South CarolinaClemson University Department of Pesticide Regulation | What the contract must sayTreatment and inspections must follow the regulations and the written contract for as long as it is valid. Contract papers must say whether Formosan termites are covered and whether cover is retreatment only or includes repair. Any treatment standard left out needs the official Waiver of Standards form, signed before work starts.Source: S.C. Code Regs. 27-1085 B, C, checked 13 Oct 2026 | Inspections, renewal and transferWarranty and inspection records are kept for five years or the life of the warranty. A new house gets a one-year transferable warranty for repair and retreatment, and the company must offer renewals to each owner for the first five years; missing a year ends that duty. The Wood Infestation Report (the CL-100) is not a warranty.Source: S.C. Code Regs. 27-1085 B(3), H(4), K(6), checked 13 Oct 2026 | Company bond and insuranceStructural (Category 7) applicators must carry at least $100,000 combined single limit liability cover. A lapse suspends the licence automatically.Source: S.C. Code Regs. 27-1078 C, checked 13 Oct 2026 |
| GeorgiaGeorgia Structural Pest Control Commission | What the contract must sayA written contract for every job, signed before work starts, with a diagram, the price, and the contract period. Any guarantee must carry one of two boxed statements: retreatment only, or retreatment plus repair within the limits stated in the contract. The three-day right to cancel must be disclosed.Source: Ga. Comp. R. & Regs. 620-6-.02(1)-(2), checked 13 Oct 2026 | Inspections, renewal and transferThe contract must state the renewal fee, the number of years that fee stays fixed, and whether reinspections are made and roughly how often.Source: Ga. Comp. R. & Regs. 620-6-.02(1)(g), checked 13 Oct 2026 | Company bond and insuranceBonds are not required, but a company that advertises itself as bonded must hold a master bond of 5 percent of the prior year's gross sales, up to $100,000 (or a bond per job), and tell each customer in writing whether the contract is covered. Wood-destroying organism licensees need at least $100,000 per occurrence and $500,000 a year in liability cover, plus errors and omissions.Source: Ga. Comp. R. & Regs. 620-4-.01(3); Georgia Department of Agriculture insurance form (12-2024), checked 13 Oct 2026 |
| FloridaFlorida Department of Agriculture and Consumer Services | What the contract must sayThe first page must say in bold whether the contract covers repair and retreatment, retreatment only, or has no warranty, and must flag any limits or exclusions in bold. The words "full" or "unlimited" cannot sit next to "guarantee" or "warranty" if any limit applies. Any bond's obligations must be written out in the bond's own words.Source: s. 482.227, Fla. Stat.; Fla. Admin. Code R. 5E-14.105(2)(j), checked 13 Oct 2026 | Inspections, renewal and transferThe contract must state the exact annual renewal fees and any reinspection interval, and each reinspection gets a signed report. A new-house warranty runs at least one year, and the owner can extend it annually for at least four more years.Source: Fla. Admin. Code R. 5E-14.105(2)(g),(i), (3), (6), checked 13 Oct 2026 | Company bond and insuranceEvery pest control business needs liability cover (for example $500,000 combined single limit). Companies that issue real estate wood-destroying organism reports also need errors and omissions cover or a bond of $250,000 per occurrence and $500,000 in the aggregate, or $500,000 net worth.Source: s. 482.071(4), Fla. Stat.; s. 482.226(6), Fla. Stat., checked 13 Oct 2026 |
| AlabamaAlabama Department of Agriculture and Industries | What the contract must sayA written contract before any work, covering at least one year, with a foundation diagram showing any visible infestation and the total price. The top of the first page must carry a boxed statement: retreatment only, or retreatment plus repair within the stated limits.Source: Ala. Admin. Code r. 80-10-9-.16(1), (3), checked 13 Oct 2026 | Inspections, renewal and transferThe contract must state the reinspection interval, the renewal fee and the number of years it stays fixed. The owner gets a signed report after each annual inspection. Bait systems are checked at least every 90 days unless the label says otherwise.Source: Ala. Admin. Code r. 80-10-9-.16(3)(g), (5), (6), checked 13 Oct 2026 | Company bond and insuranceAt least $150,000 liability cover, plus at least $100,000 errors and omissions cover for the official Alabama Wood Infestation Inspection Report and damage by wood-destroying organisms. Failing to keep the required bond and insurance is grounds to revoke a permit.Source: Ala. Admin. Code r. 80-10-9-.28, -.23(10), checked 13 Oct 2026 |
| LouisianaLouisiana Structural Pest Control Commission (LDAF) | What the contract must sayThe contract must be on a form provided or approved by the Commission, guarantee the work for at least one year, and include a diagram of every structure covered. Contracts for pre-construction or new construction treatment must include a damage repair warranty of at least $25,000, exclusive to the owner for five years.Source: LAC 7:XXV.119.A, checked 13 Oct 2026 | Inspections, renewal and transferAt least one inspection of the accessible areas before the contract expires. Spot treatment contracts guarantee the treated area for one year. Every contract is reported to the Commission each month.Source: LAC 7:XXV.119.A.4, C, D, checked 13 Oct 2026 | Company bond and insuranceThe rules define a bond as a written instrument from a bonding, surety or insurance company guaranteeing that the company fulfils its agreement with the customer, and require companies to keep the bond and general liability insurance in force at all times.Source: LAC 7:XXV.101, 117.A, checked 13 Oct 2026 |
| MississippiMississippi Department of Agriculture and Commerce, Bureau of Plant Industry | What the contract must sayA contract is issued only after an approved termite treatment. It must guarantee the work to the original owner and later owners for at least one year, and say in bold whether damage repair is included or only retreatment.Source: Miss. Admin. Code Title 2, Part 1, Subpart 3, Ch. 11, 115.2-115.5, checked 13 Oct 2026 | Inspections, renewal and transferThe company re-examines the house before the contract expires and every year after, with a written report to the owner. Annual retreatment without documented evidence is prohibited. A company that will not renew must give 30 days' written notice.Source: 115.7, 115.12, 115.13, checked 13 Oct 2026 | Company bond and insuranceA surety bond of at least $5,000 and liability insurance of at least $100,000 per occurrence and $200,000 a year, including errors and omissions on official wood destroying insect reports and damage caused by structural pests.Source: 110.01, 110.02 (amended 2 Nov 2024), checked 13 Oct 2026 |
We left out a “customary at closing” column: none of these regulators’ rules says whether a termite contract is expected at closing, and we do not guess. Lenders set that, through the inspection report they ask for. Georgia’s rules were read on the official code site and on the Legal Information Institute’s copy of the same text, as was Florida Rule 5E-14.105; Louisiana’s are the Commission’s own December 2023 compilation.
Form TT-2026 / Section C
Risk Analysis Result
Bond costs ~$2,033 more than expected risk
At these inputs, the bond exceeds expected risk. Reasonable for low-risk areas or pre-treated new construction.
The starting values are placeholders for you to replace with your own quote. The bond inputs sit inside HomeGuide’s compiled ranges; nobody publishes a re-infestation rate, so set the risk slider from your inspector’s view of your house. The tool counts 30 percent of your damage figure as the expected repair bill when termites return undetected; that weighting is our assumption, not a published rate.
Terminix says termite contracts can often be transferred to a buyer, though it varies by agreement and company (Terminix, checked 13 Oct 2026). Two states write a transfer into the rules: Mississippi requires the guarantee to run to subsequent owners for at least the first year, and South Carolina makes the one-year warranty on a new house transferable, with renewals offered to each owner for five years. Alabama requires any waiver of treatment standards to be handed to a later owner when a contract transfers. We found no published transfer fee from Orkin or Terminix, so we do not quote one.
If you are buying a home with an existing contract, ask the seller for the contract itself (company, the retreatment-only or repair statement, the renewal fee and its expiry), the treatment diagram, any waiver and the last inspection report. Then ask the company to confirm in writing, before closing, that the contract will transfer to you.
No national pest control company publishes a termite bond (contract) price: Orkin's price page lists install prices only, and Terminix says the cost varies by home (both checked 13 October 2026). The figures available are compiled estimates. HomeGuide puts a termite contract at $500 to $2,500 to start and $150 to $500 a year to renew; LawnStarter puts a termite bond at $500 to $2,000 on average. One South Carolina operator, Walker Pest Management, publishes its own renewal prices: $175 to $200 a year for most liquid treatment warranties, and $4 per linear foot with a usual minimum of $360 a year for bait stations. Your own figure is the one written into your contract.
HomeGuide's compiled estimate is $150 to $500 a year (page updated 22 November 2025, checked 13 October 2026). Where an operator publishes its own price, it can sit inside that band: Walker Pest Management in South Carolina lists $175 to $200 for most liquid warranty renewals. In Alabama and Georgia the regulator requires the contract itself to state the renewal fee and the number of years it will stay fixed, and in Florida the contract must state the exact annual renewal fees, so ask to see that clause before you sign.
It depends on how likely termites are to return to your house and what the contract actually pays for. The arithmetic: ten renewals at HomeGuide's compiled $150 to $500 a year come to $1,500 to $5,000, on top of the first-year cost. Against that, a full liquid treatment from one national chain is published at $1,700 to $2,700 (Orkin, checked 13 October 2026). A retreatment-only contract mainly saves you that retreatment; a contract that also repairs damage is worth more, but only up to the limit written in it, and some renewals drop repair cover entirely (Orkin's renewal FAQ moves a Repair Guarantee to a Re-Treat Guarantee). Use the calculator above with your own quote and your inspector's view of the risk.
Neither state publishes a price, and we found no operator in either state that publishes a renewal price, so we do not quote a state figure. What both states do is control the paperwork. In Georgia, every wood destroying organism contract must state the renewal fee, how many years it stays fixed and whether reinspections are made (Rule 620-6-.02). In Florida, the contract must state the exact annual renewal fees (Rule 5E-14.105) and say on its first page, in bold, whether it covers repair and retreatment, retreatment only, or nothing (s. 482.227, Florida Statutes). The national compiled estimate, $150 to $500 a year to renew (HomeGuide), is the only cross-check available.
It depends on which of two kinds of contract you sign, and Alabama, Georgia, Florida and Mississippi all make the contract say which in bold or boxed text: retreatment only, or retreatment plus repair of damage within the limits stated in the contract. Repair cover always has a limit. Terminix's legal terms cap covered damage at $250,000 over the life of the plan, including renewals, for subterranean termites on qualifying homes. Louisiana requires at least a $25,000 damage repair warranty on new-construction termite contracts. Damage visible at the start goes on the contract's diagram, which Alabama, Georgia and Mississippi require, so you and the company both have a record of what was already there.
Usually, but the terms are in each contract. Terminix says termite contracts can often be transferred to a buyer, though it varies by agreement and company. Mississippi requires a termite contract to guarantee the work to the original and subsequent owners for at least one year. In South Carolina the one-year warranty on a new house is transferable, and the company must offer renewals to each owner for the first five years. We found no published transfer fee from Orkin or Terminix, so we do not quote one. If you are buying, ask for the contract, the diagram and the last inspection report, and ask the company to confirm the transfer in writing before closing.
No. The termite letter is a wood destroying insect report: a record of what an inspector could see on one day, usually requested for a sale or mortgage. The NPMA-33 form used for HUD and VA loans states that it reports conditions on the inspection date only and provides no warranty, and South Carolina's rules say the same of its Wood Infestation Report. A termite bond, in everyday use, is the ongoing service contract. Louisiana's report is the one exception we found with a guarantee attached: free treatment if live subterranean termites are found within 90 days.
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