If it's a 5 year SOL and the problem arises in year six, again there probably isn't a viable cause of action.Third, if the title company decides it or you as it's Insured, doesn't have responsibility to the grantee for the claimed defect for one reason or another, but you think it does, you'll probably need to hire an attorney to file suit against you and your wife individually for the alleged breach and tender it to the title company for coverage. 

It should be noted that it is possible for structural defects resulting from insect damage to exist in non -visible or inaccessible areas.

Finding costly defects (in roofing, plumbing, electrical and foundations) after the fact may turn the transaction into a breakeven deal, or even a loss.

While I am not suggesting you go the self help route for legal work, I do think it is wise to understand the concepts so that you can deal more defectively with your chosen professional.  

How comfortable are you with the process and documents and how is the house in terms of structure, defects etc...

In my opinion relying on a warranty deed to convey the property assuming the grantee can sue the Grantor/Insured for any defects that come to light after the conveyance is risky because there are multiple reasons why the Insurer may claim the defect is not a covered breach of the warranties. 

If recent, there may be a defect in the procedure you can defeat.

Latent defects that are known by the seller and/or licensed agent need to be disclosed by law. 

The shower rod was indeed defective, as you surmised, from the beginning.

Some might recommend using a Warranty Deed assuming if a defect arises after the conveyance the Grantee could sue the Grantor for a breach and the Grantor's title company will step in and take care of the defect.