Does insurance cover termite damage in Australia?

Does home insurance cover termite damage?

In most cases, no. Standard home and contents policies in Australia commonly list termite damage as an exclusion, or fold it into wording about insects, vermin or gradual damage. Exact wording changes from insurer to insurer and policy to policy, so we can't tell you what yours says. Your PDS can.

The PDS is the document that lists what's covered, what isn't and any conditions. Find the exclusions section and read it slowly. If you can't find a clear answer, email your insurer and ask, so you have the reply in writing.

• termite or white ant
• insects or vermin
• gradual damage or gradual deterioration
• wear and tear
• lack of maintenance

Those are the words to search for in your PDS. If any of them sit in the exclusions, termite damage is probably not covered.

Why do insurers exclude termite damage?

Insurance is built for sudden, accidental events like a storm or a fire. Termite damage builds up slowly over months or years, and inspections and barriers can prevent much of it. Many insurers treat that as a maintenance issue that sits with the owner. That's the general reasoning. Individual policies vary.

The result for you is the same. If a termite colony has eaten through a floor or a roof frame, the repair bill may land on you.

Can you insure a house that already has termite damage?

Possibly, but be careful. Insurers ask questions when you apply or renew, and the law expects you to take reasonable care to answer them honestly and accurately. Hiding known damage can put a claim at risk later.

If you're buying, the pre-purchase timber pest report is the place to learn about termite history before you sign. Our knowledgebase article on what a pre-purchase pest inspection includes explains what that report covers.

What about a termite treatment warranty?

A warranty from a termite treatment company is a different thing from insurance. Terms vary between providers, so ask for the warranty in writing and read it before you rely on it.

When you read a warranty, ask three things. Does it cover treatment only, or repairs too? What must you do to keep it valid, such as annual inspections? And what stops it applying?

How much does termite damage cost to repair?

It depends on how far the termites got. Replacing a skirting board or a section of architrave is one job. Replacing bearers, joists or wall framing is another, and it may need a builder and, in some cases, engineering advice.

Treatment is a separate cost from repairs. Bruin quotes termite work per property after an inspection, so we don't publish a price here. A written quote from a builder for the repairs is the number you need next.

How do you protect yourself when insurance won't?

The practical answer is to stop the damage before it starts. Here's the order we suggest.

1. Read the exclusions in your PDS and email your insurer if anything is unclear.
2. Book a termite inspection to AS 3660 at least every twelve months, and keep every report.
3. Fix leaks, dripping taps and blocked drainage, since termites go where the moisture is.
4. Keep soil, mulch and garden beds below the slab edge and away from timber.
5. Ask about a termite management system, either baiting or a treated zone, with ongoing monitoring.
6. Get any warranty in writing and diarise the inspection dates it needs.