Termite Bond Alabama Investment Property- yes/no?

[Bastian Kneuse]

I am in the process of acquiring a MFH in Alabama. The home was built early 1900s. As it relates to termite inspection/prevention, would it make sense to purchase a termite bond. The cost for it seems pretty high and I am wondering if it is worth it. The one-time set up fee is about $1000, with annual premiums of $170. The premiums do not cover any termite damage.

Alternatively, couldn't I just conduct an annual termite inspection and then treat it if necessary? Wouldn't take come out cheaper at the end with the same results as opposed to a termite bond?

Appreciate any thoughts or advice.

Thanks!

[Denise Evans]

@Bastian Kneuse, the bait system also goes by a trade name of Sentricon.  It's what you need in Alabama because termites are just pervasive, and the poison people formerly use to poison the earth for 1,000 years is no longer allowed.  Cups are sunk into the ground, with bait in them. The bait is checked quarterly and refilled if necessary. They circle the house at 10 feet to 20 feet from each other, plus any other structures you want protected. They attract termites, who eat the bait and also take it back to the nest to feed to the queen and young termites. The bait contains a growth inhibitor that prevents them from molting, which results in death. Death is far from the bait site, so they don't know to avoid that site. The system protects your house from termites ever reaching it.

The pest control company inspects the house annually and poisons any areas where termites have penetrated the bait shield.  I've never once had any of my properties need that service.  Because the inspections are annual, even if there were damage, it would be very minor at that point. Therefore, no need for a replacement bond to repair damage.

When you are selling in Alabama, having a bait system in place adds value to the property.  A photo of a bait station appears below.  No, my foot does not have gangrene, it's just bad lighting:)