Florida Termite Bonds

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Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all your Florida termite bond needs.

What Are They?

Florida termite bonds are different from many Florida surety bonds, because they are often purchased voluntarily by pest control businesses for the benefit of their customers. There is no Florida law requiring termite inspections or termite bonds, but many lenders won’t approve a mortgage without proof that the home is free of termites. Termites find Florida’s climate much to their liking, and they can do substantial damage to a home’s wooden structural components if allowed to multiply unchecked.

Typically, a pest control company will purchase a Florida termite bond for the ongoing protection of a client after a termite inspection and initial treatment, if treatment was required. The bond is the company’s guarantee to perform subsequent inspections and treatments, and in some cases, repair termite damage at no charge for a certain period of time—usually two years.

The bond is transferable to the buyer if the home is sold during the term of the Florida termite bond. This gives a potential lender assurance that the property is termite-free so that concerns about possible termite infestation don’t become an impediment to approving a mortgage on the property.

Who Needs Them?

Florida termite bonds are sold to pest control companies as a guarantee for their customers, one bond per customer. Although termite bonds are not mandatory, pest control professionals know that offering bonded services gives them a competitive advantage over companies that don’t.

Because termite bonds are purchased voluntarily, there is no set required bond amount. The pest control company decides what amount will be sufficient to cover the cost of services to be provided under the terms of the agreement.

Speak with a Surety Bond Professionals agent today to discuss your bonding needs.

How Do They Work?

The surety bond company (referred to as the “surety”) sets up a line of credit for the pest control company (the bond’s “principal”) at the time a Florida termite bond is issued. That line of credit is in the bond amount requested by the principal.

Here’s an example of how a Florida termite bond might work. Let’s say that a pest control company—let’s call it “Terry’s Termite Terminators”—is hired by Harry Homeowner to inspect his home for termites, as Harry is about to put the house on the market. Harry was impressed that Terry offers bonded services and a two-year guarantee, and he thought that might appeal to prospective buyers.

Terry inspects the house, finds a small colony of termites eating their way through a door sill, and gets rid of it. A few months later, the house is sold, and the new owner suspects the presence of termites. The coverage provided by the Florida termite bond that Terry purchased for the benefit of Harry transferred to the new owner when the house changed hands. The new owner calls in Terry to re-treat the home and replace a couple of termite-damaged floorboards. Terry, being an ethical pest control professional, lived up to his guarantee and provided those services without delay.

However, if Terry had not remediated the problem to the new homeowner’s satisfaction, the homeowner could have filed a claim against the Florida termite bond. If that were to happen, and the surety was unable to negotiate an amicable settlement, the surety would pay the claim, drawing against Terry’s credit line. Terry is legally obligated to repay that amount to the surety.

What Do They Cost?

Applications for Florida termite bonds go through the surety’s underwriting process. The underwriters assess the risk of extending credit to the applicant based on such factors as the individual’s personal credit score, overall financial strength, and industry experience. A highly creditworthy pest control professional could pay an annual premium as low as 1% of the total bond amount.

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Our surety bond professionals will get you the Florida termite bond you need at a competitive rate.