Termites and Your Home's Value: Protecting Your Biggest Investment

Q: Should I buy a house that had termites?

Often yes, if the problem was treated and documented. Termites are common in South Florida, so a past infestation is not unusual. Ask for treatment records, the current contract and its warranty type, and whether it transfers to you. Read the WDO report's findings and inaccessible areas, and if damage is noted, have a qualified contractor evaluate it, since the WDO report is not a structural assessment.

Q: Does homeowners insurance pay for termite damage?

Do not assume it does. Many homeowners policies exclude damage from insects, and termite damage builds up slowly rather than happening all at once. Read the exclusions in your own policy and ask your agent, and do not count on insurance as your termite plan. A termite contract with a repair warranty is the more reliable protection. See is termite damage covered by homeowner's insurance.

Q: Is a new home protected from termites?

It starts with protection, but not permanent protection. The Florida Building Code requires termite protection for new construction, and the builder must provide a certificate before the home can be occupied. FDACS notes that pre-treatment blocks access but does not eliminate a colony already in the soil, and that barriers can fail when construction or moisture problems break them down. Read why termites appear even in new homes.

Q: Can a termite contract transfer when I sell my home?

Many can, but it depends on the contract. Ask your termite company whether the agreement transfers to a new owner and what the buyer must do to keep it active. Buyers tend to value coverage that comes with the house, especially a retreatment-and-repair warranty, so a transferable contract can be a selling point. Keep a copy in your termite file.

Key takeaways

Termites cost you value twice: through the repairs themselves and through what buyers see on the WDO report.
Florida's WDO report covers only visible, accessible areas and says it is not a structural damage report, so read the inaccessible-areas section closely.
New Florida homes need a certificate of termite protection before the certificate of occupancy, but that protection does not last forever.
A file of inspections, treatments, bait station service and repairs turns past termites into proof of good maintenance.
Know your warranty type: retreatment only, retreatment and repair, or spot/no warranty.

In this article

How Termites Chip Away at Home Value
Before You Buy: Read the WDO Report Like an Investor
While You Own: A Year-Round Termite Protection Plan
When You Renovate or Build: Protect New Construction
Keep a Termite File
Contracts and Warranties That Protect Value
When You Sell: Get Ahead of the Buyer’s Inspection
How Toro Helps Protect Your Investment
Frequently Asked Questions

Termites threaten your home’s value in two ways: the hidden damage they do to wood inside walls, floors and roofs, and the paper trail they leave behind when the house is inspected for a sale. Protecting your investment means managing both, from the day you buy until the day you sell.

In South Florida, where termites are active all year and several destructive species overlap, that is not a one-time task. This guide follows the life of a home: what to check when you buy, how to protect value while you own and renovate, and how to prepare when it is time to sell. Most of it costs far less than one major termite repair.

Elegant home's wooden front door and lush landscaping, the kind of property value termites can threaten.

How Termites Chip Away at Home Value

The first loss is physical. According to UF/IFAS, subterranean termites account for about 80% of the roughly $20 billion spent each year in the U.S. on termite control and repairs. Damage is often hidden until remodeling, so by the time it is found, it may involve framing, subfloors and finishes, not just a single board.

The second loss is perception. Buyers compare houses, and a property with live termites, unexplained old damage or no treatment records gives them reasons to negotiate or walk away. A house with the same history but complete records, a clean recent inspection and a transferable warranty looks like a well-kept home. Our article on how termites can impact your financial stability covers the budget side of this risk.

Before You Buy: Read the WDO Report Like an Investor

When a termite inspection is part of a Florida real estate transaction, the results go on the state’s official form. UF/IFAS notes that Form 13645 is required by Florida statute for these inspections. The FDACS Wood-Destroying Organisms Inspection Report has five sections, and three deserve your closest attention.

Section of the WDO report	What to look for	Why it matters to your investment
Inspection findings	Live termites, evidence (wings, frass, shelter tubes, exit holes) and damage, with locations	Tells you what needs treatment and repair before or after closing
Obstructions and inaccessible areas	Attic, interior, exterior or crawlspace areas that could not be inspected, and why	Hidden areas are where unseen damage can sit
Notice of inspection and treatment	Visible evidence of previous treatment and any current treatment	Ask the seller for the records behind it
General information	Company, license number, inspector name and ID card number	Confirms a licensed inspector did the work

Read the form’s limits too. It covers only what was visible and readily accessible, excludes areas hidden by wall and floor coverings, furniture, stored items or insulation, and states that it is not a structural damage report. If damage is noted, have a qualified contractor evaluate it before you close.

Make sure the inspector is properly licensed. UF/IFAS has documented illegal termite and WDO inspectors working in Florida and notes that the home inspection industry itself remains unregulated, so a general home inspection is not the same as a WDO inspection by a licensed pest control company.

Toro tip: Before closing, ask the seller for every termite document they have: the current contract, warranty type, treatment invoices, bait station service records and repair receipts. Start your own termite file with them on day one.

Need help with pests in South Florida?

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While You Own: A Year-Round Termite Protection Plan

Termites do not take a season off in Florida; UF/IFAS notes that native subterranean colonies feed year-round. Spread the work across the year so nothing slips.

When	What to do	Why
January-June	Watch windowsills, light fixtures and baseboards for swarmers and wings	Swarm season for the main South Florida termites
Start of the rainy season	Check gutters, downspouts, grading and irrigation	Subterranean termites need moisture near the foundation
After big storms	Look for leaks, wet framing and debris piles	Moisture and wood debris attract termites
Every few months	Walk the foundation for mud tubes; check furniture and trim for pellets	Catches activity between professional visits
Once a year	Professional termite inspection	FDACS calls an annual inspection a must for older homes

Three maintenance habits protect the most value:

Keep the foundation dry. FDACS recommends grading so water drains away from the house, repairing leaking pipes and foundation cracks and pointing sprinklers away from walls.
Keep it visible. UF/IFAS recommends mulch under 2 inches thick within 12 inches of the foundation and a roughly 6-inch inspection strip so mud tubes can be seen. Florida building code requires irrigation at least 1 foot from a building sidewall, and irrigation that wets walls can void a termite warranty.
Keep wood off the soil. UF/IFAS advises avoiding wood-to-ground contact, including storing mulch off the ground.

Not sure how often your home needs a professional visit? Read how often you should get a termite inspection.

When You Renovate or Build: Protect New Construction

Renovations are when hidden termite damage is most often found, and they are also a chance to prevent it.

For new construction, the Florida Building Code requires termite protection using registered termiticides, which can include soil-applied products, baiting systems or wood treatments. According to the City of Tampa’s guide to code section R318.1, the licensed pest control company must issue a certificate stating that the building has received a complete treatment for the prevention of subterranean termites, and it must be approved before a certificate of occupancy is issued.

FDACS describes the pre-construction options: a chemical soil barrier, direct treatment of the bottom third of the wood framing, or a baiting and monitoring system around the property. It also notes that a warranty must be issued for preventive treatment on new construction and can be renewed annually for at least four more years.

What new-home owners often miss is that this protection has limits. FDACS points out that pre-treatment blocks access but does not eliminate a colony already in the soil, and that barriers can fail when construction problems or moisture break them down. Landscaping, additions, pavers and new plumbing can all disturb a treated zone. If you remodel, ask your termite company whether the work affects your protection.

Keep a Termite File

A simple folder, paper or digital, is one of the cheapest ways to protect resale value. Include:

The termite contract and the warranty type
Every inspection report, including WDO reports from your purchase
Treatment invoices, with dates, products and areas treated
Bait station service records, if you have a baiting system
Repair invoices and before-and-after photos
Notes and photos of anything you found yourself, with dates

When a future buyer’s WDO report notes “evidence of previous treatment,” this file answers the obvious next question.

Contracts and Warranties That Protect Value

FDACS describes three types of termite warranties in Florida:

Retreatment only, if termites return
Retreatment and repair, if termites return, which generally costs more
Spot or no warranty

Know which one you have and what it excludes. FDACS also notes that it does not settle disputes between homeowners and pest control companies, so contract disputes go to civil court. Read the terms before you sign, not after you find damage. Remember too that homeowners insurance is not a substitute for a termite contract, as the FAQ below explains. If you live in a condo or HOA community, shared walls and common areas add another layer; HOA termite problems explains how.

When You Sell: Get Ahead of the Buyer’s Inspection

The worst time to discover termites is during a buyer’s inspection period, when every finding becomes a negotiation. Before you list:

Schedule your own termite inspection a few months before listing, so you have time to treat and repair on your schedule.
Treat any activity and get the species confirmed in writing.
Repair damage properly and keep the invoices and photos.
Reduce “inaccessible areas.” Clear stored items away from garage walls and make attic access easy, so the buyer’s inspector can see more.
Gather your termite file and ask whether your contract transfers to the buyer.
Ask your real estate agent or attorney what you must disclose about past termite activity and treatment.

Safety note: Do not try to cover up termite activity or treat it yourself with fuel, bleach or homemade mixtures before a sale. These do not eliminate colonies, can harm people and pets, and leave a buyer's inspector with more questions. Termiticides are applied by licensed professionals according to the label.

How Toro Helps Protect Your Investment

Toro’s termite control service starts with a free inspection: a trained technician identifies the species and checks how far the damage goes, then recommends Sentricon baiting for subterranean termites, TORO-GUARD for localized drywood termites or tent fumigation for widespread drywood infestations. Toro also offers termite prevention for homes that are not infested yet and pre-purchase inspections for buyers.

Toro has protected South Florida homes since 1969 and backs its work with the 110% Satisfaction Guarantee: if the bugs come back, so will Toro, at no additional cost to you. For photos of the species that most often affect home value here, browse our termite pest library.

TORO Pest Management service truck parked outside the Miami office

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Frequently Asked Questions

Do termites lower a home's appraisal?

Termites themselves are not a line item, but their effects can be. Visible damage, needed repairs and an active infestation can all influence how buyers view the property and what they offer. Treating early, repairing properly and keeping documentation limits the impact. For the selling side in detail, read how eastern subterranean termites affect property value.

Should I buy a house that had termites?

Often yes, if the problem was treated and documented. Termites are common in South Florida, so a past infestation is not unusual. Ask for treatment records, the current contract and its warranty type, and whether it transfers to you. Read the WDO report's findings and inaccessible areas, and if damage is noted, have a qualified contractor evaluate it, since the WDO report is not a structural assessment.

Does homeowners insurance pay for termite damage?

Do not assume it does. Many homeowners policies exclude damage from insects, and termite damage builds up slowly rather than happening all at once. Read the exclusions in your own policy and ask your agent, and do not count on insurance as your termite plan. A termite contract with a repair warranty is the more reliable protection. See is termite damage covered by homeowner's insurance.

Is a new home protected from termites?

It starts with protection, but not permanent protection. The Florida Building Code requires termite protection for new construction, and the builder must provide a certificate before the home can be occupied. FDACS notes that pre-treatment blocks access but does not eliminate a colony already in the soil, and that barriers can fail when construction or moisture problems break them down. Read why termites appear even in new homes.

Can a termite contract transfer when I sell my home?

Many can, but it depends on the contract. Ask your termite company whether the agreement transfers to a new owner and what the buyer must do to keep it active. Buyers tend to value coverage that comes with the house, especially a retreatment-and-repair warranty, so a transferable contract can be a selling point. Keep a copy in your termite file.

Sources

Wood-Destroying Organisms Inspection Report (Form 13645), Florida Department of Agriculture and Consumer Services
Choosing a Licensed Wood-Destroying Organism (WDO) Inspector (EDIS IN629), UF/IFAS Extension
Protecting Yourself and Your Property Against Subterranean Termites, Florida Department of Agriculture and Consumer Services
Residential Termite Protection Requirements (Florida Building Code R318.1), City of Tampa
The Facts About Termites and Mulch (EDIS IN651), UF/IFAS Extension
Native Subterranean Termites: Reticulitermes flavipes, R. virginicus, R. hageni (EDIS IN369), UF/IFAS Extension

Educational content. This article is for general information about pests in South Florida and is not medical, legal or professional advice. If you have a bite, sting or allergic reaction, contact your doctor; in an emergency, call 911. Pest problems vary from home to home, so a licensed professional should inspect before treatment. When using any pesticide, always read and follow the product label.