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Historically, we have referred to termite contracts on our client's homes as Termite Bonds. It is important that we do not just generically call any termite coverage a BOND with the assumption that the home is covered for termite damage repairs.
The termite coverage contracts have changed over time, and the industry momentum is trending towards Termite Warranties, which mainly just provide coverage for re-treatment only. Some termite companies still refer to their protection for retreatment warranties as Bonds, which may mislead the consumer about their purchased termite coverage.
Excluding the types of termites that are included or excluded in contracts, there are basically two types of termite contract coverages available in the market:
From a Google search:
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