Repair or Retreat Bond... Which one is better?

By
Real Estate Agent with Century 21 Results Realty

I'm not a "Bug Guy" and I don't play one on TV.  But, as a real estate agent, I get asked about bugs a lot.  More specifically, I get asked about termites... ok, actually about termite damage and termite bonds. 

We joke (ok, actually the Bug Guys joke) that here in the south there are homes that have been infested and homes that will be infested.  There are NO homes that won't get a termite visit.  And I can say from experience that they might be right... 

And of course, as soon as my buyer finds a house and we start delving further into it... like the seller's disclosure, the question comes up about the different bond types that are available.  Basically, there are two types... 

  • Repair Bonds
  • Retreatment Bonds

And there are two major distinctions between them. 

  • price
  • coverage

Repair bonds are expensive, but cover repairs if termite damage occurs during the course of the coverage. 

Retreatment bonds are WAY less expensive, but only cover retreating if termites (or termite damage) is found. 

In effect, with a retreatment bond, if your house caves in because of an infestation, they will come by and spray the wreckage left in your yard... 

Often, the actual treatments are the same whether you have a repair or retreatment bond.  The difference is the exposure the termite control company has.  Under a retreatment bond, they might be out a few bucks for chemicals and a little labor for the technician to make the call.  Under a repair bond, they could be out tens of thousands of dollars for repairs. 

One little tidbit... 

Most companies are quite ethical in their operations...  But, I have had a couple of clients that had interesting experiences with repair bonds... basically, after a couple of years, the company would "forget" to send out a new invoice.  In a couple of cases, when they had a new inspection done, there was termite damage... 

So, especially if you have a repair band with your termite coverage, MAKE SURE that you keep it up to date.  Don't rely on the renewal notices...

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Rainmaker
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Thom Abbott
MyMidtownMojo.com |770.713.1505 | Intown Atlanta GA Condo Living - Atlanta, GA
Midtown Atlanta GA Condos For Sale

Repair Bond Mr. Bug Guy....expensive or not..the only way to go!

Sep 14, 2009 02:13 PM #1
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Eleanor Thorne
Equity Resources - Cary, NC
Equity Resources 919-649-5058

I've lived in the South my whole life, and been a homeowner for over 25 years - I never knew you could get a bond?  Wow!

Sep 14, 2009 11:42 PM #2
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Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

Thom - For some it isn't an option...  And with the games some of the companies play, it is too easy to get burned. 

Eleanor - Wow indeed...  ;^ )

Sep 16, 2009 01:35 PM #3
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