|
A Word about Termite Repair Bonds
Put
simply, a termite repair bond
is a contract between a property owner and a professional termite
company that
states, depending upon the limits in each contract, that the termite
company
promises to control any future termite infestations AND repair any new
damages
caused by future termite infestations. Termites are of particular
concern
to property owners in Georgia because the state has the highest density
of
subterranean termite colonies per acre in the Unites States.
Georgia also
ranks 3rd nationally in monetary damages incurred annually by
homeowners.
What if we get termites and need repairs? How do we know the
termite
company will pay?
The phrase
Termite Repair Bond has become a bit of a
misnomer in the termite and pest control industry. Many termite
and pest
control companies offer what they call a Termite Repair Bond, though in
reality
it is actually a termite repair warranty. The difference is that,
in
order for a termite company to say they are bonded, or that they offer
termite
bonds, they must maintain a bond for each and every termite treatment
they
perform. This is a requirement of the Georgia Department of
Agriculture
and the Structural Pest Control Commission. Doing so would become
prohibitively
expensive for most termite companies. These days a professional
termite
and pest control company will typically carry a Commercial General
Liability
policy written specifically for the termite industry. Several
years ago
the insurers providing coverage to the termite and pest control
industry
amended the language of their policies such that it was really no
longer
necessary to cover each individual termite treatment with a bond.
Now the
insurers provide blanket coverage; however, the term termite repair
bond still
remains prevalent in the industry. This is mostly due to the use
of the
phrase by the general public and the termite industry for so many
years.
Is there a
difference between a termite repair bond and a termite repair
warranty? A little, but the meat and potatoes of both is the
same - a
form of insurance paid for by the termite company backs them
both.
The Georgia
Structural Pest Control Act requires at least a minimum of $250,000
of liability insurance be carried by all pest and termite
companies. That
doesn't mean that every policy has to include coverage for property
damages
caused by wood destroying organisms, such as termites, and is one
reason why
one termite company might offer termite damage protection while another
does
not. It does not mean that just because a termite company is
offering
damage protection that you will have $250,000 of coverage. Each
company
purchases its own limits of liability insurance, and each termite
company
offers its own termite contract. Do not assume all termite
contracts
are the same. Nothing could be further from the truth.
|
