Termite Bonds in Memphis: What They Cover

If you already have a bond, find the contract before you call anyone. The coverage is in the fine print.

What Tennessee says

The Tennessee Department of Agriculture's consumer tips say termite treatment contracts should be warranted for no less than one year, renewable at the discretion of the company and the consumer. The Department can investigate substandard termite treatment when there is a current contract, a company's failure to issue a termite contract, and a failure to retreat an active infestation. Those are the parts of a bond the state can help with. It does not handle price disputes.

Retreat-only vs repair coverage

Retreat-only

If termites return, the company comes back and treats again at no extra charge. Damage the termites did is your cost. This is the cheaper kind.

Repair

The company retreats and also pays to repair new damage, usually up to a stated limit and with conditions. This costs more each year. Read what counts as new damage, what is excluded (often moisture problems and existing damage), and the dollar cap.

My view: in an older Memphis house with a crawlspace, repair coverage is worth pricing. In a newer slab house with no history, retreat-only is usually enough. Either way, the inspection each year is the part that does the work.

What it costs

This Old House says a renewable termite bond adds $500 to $2,000 to the total cost of termite control (June 2026, national). Renewal prices vary with the size of the house and the kind of coverage. Get the first-year price, the renewal price and any increase clause in writing. See the cost guide.

Before you renew

• Ask for the report from last year's inspection.
• Check whether anything changed: a new deck, a patio poured against the house, mulch piled over the foundation. Some contracts exclude damage tied to conditions you created.
• If you switch companies, the new one will likely re-inspect and may want to retreat before it takes over the bond.
• If you are selling, ask whether the bond transfers to the buyer and what it costs to transfer.

Why it matters here

Subterranean termites need damp soil, and Memphis averages about 56 inches of rain a year with few hard freezes (NOAA, 1996 to 2025). Most homes in Midtown and North Memphis are old enough that a past infestation or treatment is likely. See termite control and the Tennessee termite letter.