If you own a home in South Carolina, North Carolina or Virginia, someone has asked whether you have a termite bond. It comes up at closing, at every renewal notice, and after the first spring swarm. A bond can be one of the better deals in homeownership or a yearly bill for very little, and the difference is in the contract. This guide covers what a bond actually is, what SC and NC rules require, what homeowners report paying, how transfers work, and what to check before you renew.
A termite bond is a renewable service agreement, not insurance. The company inspects your home, usually once a year, and takes the corrective action the contract promises if termites come back. That's retreatment only in most contracts. Some bonds also pay to repair new damage, usually up to a dollar limit.
For a wood-frame home in the Carolinas or coastal Virginia, a bond is usually worth having, because standard homeowners insurance doesn't cover termite damage. But a retreatment-only bond with no real inspection is worth far less than a retreatment-and-repair bond. Read which one you have.
What a Termite Bond Is, and the Two Kinds
"Bond" is the Southern name for what the regulations call a termite contract, warranty or service agreement. North Carolina's Department of Agriculture puts it plainly: these agreements "are not an assurance that termites will not return, but provide for corrective action to be taken as specified in the agreement." Both state agencies describe the same two types.
| Retreatment only | Retreatment and repair | |
|---|---|---|
| If termites return | The company treats again at no added charge | The company treats again |
| New damage | Not covered. NCDA&CS: the company has no obligation to "repair, replace, or correct any damage" | Repaired or paid for "up to a certain amount" (NCDA&CS), for damage that happens while the bond is active |
| How common | "The most common practice in the industry" (NCDA&CS) | Not every company offers it, and "not all structures will qualify" (Clemson DPR) |
| Damage that existed before | Not covered | Usually not covered. That's why the starting condition needs to be on paper |
Clemson's Department of Pesticide Regulation, which enforces South Carolina's termite rules, gives homeowners this advice: "The most useful contracts cover damage, namely treatment and repair."
What SC and NC Rules Require
Most articles about bonds skip the state rules. They matter, because they decide what a contract has to tell you.
| Rule | South Carolina (Regs. 27-1085) | North Carolina (NCDA&CS) |
|---|---|---|
| Written contract | Treatment and inspections must follow the regulations and "the terms of the written agreement or contract for as long as the contract is valid" | Every termite contract must be in writing, with the company's license number, a foundation diagram, whether and how often reinspections happen, when retreatments will be made, and the total price |
| Existing damage | Not spelled out in the contract rules | The diagram must show whether the infestation is active or inactive and the location of any visibly damaged timbers |
| Formosan termites | The contract or warranty must say whether Formosan termites are covered and whether that covers retreatment only or repair too | No equivalent rule |
| Records | The company must keep the warranty, treatment, waiver and inspection records for 5 years or the life of the warranty, whichever is longer | Not specified in the homeowner guide |
| New homes | A home treated during construction comes with a one-year transferable warranty covering retreatment and repair. The company must offer renewals for the first 5 years | Pre-construction treatment rules apply, covered separately by NCDA&CS |
The South Carolina new-home rule has a catch that surprises buyers: "Failure of the homeowner to renew in any one year relieves the business of any future responsibility for renewals." Skip one year and the right to renew is gone. The warranty requirement also doesn't apply to homes with rigid foam board insulation running below grade, untreated wood below grade, too little ground clearance, or rooms added after the pretreatment.
In Virginia, read your contract with the same checklist below. The contract terms are what you can hold the company to.
What a Termite Bond Costs: What Homeowners Report
Bond prices aren't published or regulated, and they vary with the house, the treatment type and the company's view of the risk. Clemson DPR notes that the renewal price "varies depending on the company's assessment of the risks involved and the type of warranty." Here's what homeowners in the region report paying, from Reddit threads (via Google search excerpts):
| Where | What they reported |
|---|---|
| Charleston (2026) | A bond taken over with the house, now "400+/year for the once a year service" |
| North Charleston | A quote of $1,350 for the first year, for a house with no termites |
| Columbia | "I pay about 500 a year" |
| South Carolina | "$500 a year" with a national company |
| A 27-year-old house | "Up to $600+ a year," with no termite finds in all that time |
| A new build | Builder paid the first year, and the renewal rose about 25% in two years |
The pattern: the first year costs the most, because it includes the initial treatment or bait station installation. Renewals after that ran from about $400 to over $600 a year in these reports, and they can rise. For what the treatment itself costs, see how much termite treatment costs. When comparing quotes, compare like with like: a retreatment-only renewal and a retreatment-and-repair renewal aren't the same product.
Is a Termite Bond Worth It?
Start with what you'd do without one. The Insurance Information Institute says a standard homeowners policy "will not cover damage due to lack of maintenance, mold or infestation from termites or other pests." Termite damage is on you.
Opinions in the region split hard. The top reply in a 2026 Charleston thread on bond prices called bonds "almost completely useless," pointing out they only cover subterranean termites. On the other side, one homeowner wrote that a company "paid for all $50,000 of the repairs because my parents had a termite bond with them." Both can be true. It depends on the contract.
A bond is worth the most when:
- It includes repair coverage with a meaningful dollar limit, not a few hundred dollars.
- You're on the South Carolina coast, where Formosan termites occur and colonies can reach the millions. Check the Formosan line in the contract. See drywood vs. subterranean termites in the Carolinas.
- The house has a crawl space, wood near the soil or past termite activity.
- You plan to sell. As one South Carolina commenter put it, "almost any buyer in the south is going to want a termite bond."
It's worth less when it's retreatment only, when nobody actually inspects the house, or when your real risk is drywood termites and the contract only covers subterranean ones.
How to Transfer a Termite Bond When You Buy or Sell
Whether a bond transfers is set by the contract. Clemson DPR advises asking about "the provisions for transferring the coverage to a new owner" before you sign, and notes that transferable and lifetime warranties "are less common than they were in years past." Ask the company before you list or before you close.
- Keep it active. Under South Carolina's new-home rule, the right to transfer within the first 5 years depends on the warranty staying in effect through each owner. Check whether your contract has the same condition.
- Ask for the paperwork: the contract, the treatment record, the inspection history and the foundation diagram. In South Carolina the company must keep these for at least 5 years.
- Confirm the type. A repair bond is a real asset to a buyer. One Alabama homeowner noted that if you have the retreatment-and-repair kind, "it is cheaper to keep it and transfer it to the new owner."
- Ask about a transfer fee and whether the new owner gets a fresh inspection.
A Bond Is Not a CL-100, WDIR or NPMA-33
At closing, buyers and lenders usually ask for a wood-destroying insect report, not a bond. The form depends on the state: the CL-100 in South Carolina, the WDIR 100 in North Carolina, and the NPMA-33 in Virginia. These reports describe visible evidence on the day of the inspection. North Carolina's guide to the WDIR says it "is not a warranty as to the absence of wood-destroying insects." It's a snapshot, and the bond is the ongoing agreement. You may need both. For timing, see how often to have a termite inspection.
Read the Contract for These 8 Things
- Retreatment only, or retreatment and repair? If repair, what's the dollar limit?
- Which termites? Subterranean only, or drywood too? In South Carolina, the contract must state the Formosan coverage.
- How often are inspections, and what areas are excluded as inaccessible?
- What's the starting condition? Get existing damage written on the diagram, so a later claim isn't brushed off as "old damage."
- What voids coverage? Moisture problems, wood-to-soil contact, foam insulation below grade and additions are common exclusions.
- What happens if you miss a renewal? Is there a grace period?
- How much can the renewal rise each year?
- Can it be transferred, and at what cost?
When the Company Says It's Not Covered
The two most common disputes are "that's old damage" and "that's excluded." An attorney at Campbell Law, a firm that handles termite damage claims nationwide, addresses the first in a YouTube video on termite company excuses. His point: dead termites don't eat wood, so if a house has been under bond for years and the damage was never disclosed to the owner, it happened "on their watch." That's the argument for getting the starting condition documented.
Hidden construction is the other trap. A 2018 FOX 5 Atlanta investigation on YouTube (about 80,000 views) covered two Gulf Coast homes that had termite bonds but were infested by Formosan termites hidden behind spray foam insulation. One, a house in Orange Beach, Alabama, was called a total loss. Georgia's agriculture department had warned that spray foam can hide termite damage and live termites. That family sued, and the pest control company disputed the claims. South Carolina's rules already exclude homes with foam board insulation below grade from the new-home warranty requirement, so ask how any foam on your house affects coverage.
If you find damage, take photos, keep every renewal and inspection record, and get the company's answer in writing. North Carolina's advice applies everywhere: "do not panic." Termites won't cause significant structural damage in a matter of weeks, and you have time to read the contract and get a second opinion. If you're not sure whether you have activity now, start with how to tell if your home has termites.
Our termite control service handles inspections, treatment and ongoing protection across South Carolina, North Carolina and Virginia. In coastal South Carolina, see termite control in Charleston.
Key Takeaways
- A bond is a service agreement, not insurance. Homeowners insurance doesn't cover termite damage.
- Retreatment only is the most common type. Retreatment and repair is worth more, up to its dollar limit.
- In South Carolina, the contract must say whether Formosan termites are covered, and new homes get a one-year transferable warranty with 5 years of renewal rights. Miss one renewal and that right ends.
- In North Carolina, the contract must be in writing with a diagram showing active or inactive termites and visible damage.
- Homeowners report renewals of about $400 to $600+ a year, with a higher first year.
- A bond isn't a CL-100, WDIR or NPMA-33. Buyers usually want both.
Frequently Asked Questions
A termite bond is a renewable service agreement with a licensed pest control company. The company inspects your home, usually once a year, and takes the corrective action the contract promises if termites return. Most bonds cover retreatment only. Some also cover repair of new damage up to a dollar limit. It is not insurance.
Prices aren't regulated or published, and they depend on the house, the treatment and the type of bond. Homeowners in Charleston and Columbia report renewals of about $400 to over $600 a year. The first year costs more because it includes the initial treatment or bait installation, and one North Charleston homeowner was quoted $1,350 for year one.
No state law requires a homeowner to keep a bond. South Carolina rules do require that a new home treated during construction come with a one-year transferable warranty, with renewals offered for the first 5 years. At closing, lenders and buyers usually ask for a CL-100 wood infestation report, and many buyers also want a bond in place.
Only if it's a retreatment-and-repair bond, and then only new damage up to the contract's limit. Retreatment-only bonds, which NCDA&CS calls the most common type, cover treating the termites again but not repairing what they ate.
It depends on the contract. Clemson's Department of Pesticide Regulation advises asking about transfer provisions before you sign, and notes that transferable warranties are less common than they used to be. Keep the bond active: under South Carolina's new-home rule, the warranty can be transferred within the first 5 years only if it has stayed in effect.
Most are renewed every year. NCDA&CS says most service agreements run one year after the initial treatment, and Clemson's Department of Pesticide Regulation notes that contracts are usually written for 5 to 10 years of renewals. Coverage continues only as long as you keep paying the renewal.
Your coverage can end. Under South Carolina's new-home warranty rule, missing a renewal in any one year ends the company's obligation to offer future renewals. Read your contract for its lapse terms and any grace period before the renewal is due.
No. The Insurance Information Institute says a standard homeowners policy will not cover damage from infestation by termites or other pests. That gap is the main reason to consider a bond with repair coverage.
It depends on the contract. In South Carolina, the contract or warranty must state whether Formosan termites are covered and whether that coverage includes repair. Many bonds cover subterranean termites only, so check before you rely on one for drywood termites.
For most wood-frame homes in the Carolinas and coastal Virginia, yes, especially a retreatment-and-repair bond with real annual inspections. Insurance won't pay for termite damage. A retreatment-only bond with no inspection is worth much less, so compare what each contract actually promises, not just the price.
Sources: S.C. Code Regs. § 27-1085, Standards for Prevention or Control of Wood-destroying Organisms; Clemson University Department of Pesticide Regulation, South Carolina Standards for the Control of Termites and Other Wood-Destroying Organisms; NCDA&CS Structural Pest Control, A Homeowner's Guide to Termite Control Service Agreements and Warranties and A Homebuyer's Guide to the Wood-Destroying Insect Report; Insurance Information Institute, Which disasters are covered by homeowners insurance?; TermiteTom (Campbell Law), "Termite Company Excuses: 'Old Damage'", YouTube; FOX 5 Atlanta, "I-Team: Homes Ravaged by Termites Hidden Behind Spray Foam Insulation", YouTube (2018); homeowner accounts from Reddit (via Google search excerpts).
Photo credits: Alton, CC BY-SA 3.0, via Wikimedia Commons.