Terminix termite insurance proposal...WTF?

[arcas]

Since my home is approaching 20 years old and I have a wooded lot, I got four estimates for termite prevention treatment. Three were your standard fare "We'll dig a trench around the house, do the treatment and guarantee no termites for 5-8 years (depending on the contractor)". Then there's Terminix. Their proposal was for me to basically pay them about $30/month indefinitely. In turn, they would do absolutely nothing until there were signs of termites at which point they'd do their treatment and supposedly pay for any repairs. So in essence they're offering a kind of wacky termite "insurance". Do people really sign up for this?

Here's the problem: If you were to sell your house, law requires you to disclose to prospective buyers the details of any pest infestations and treatments made while you owned the house. Now, play the role of a homebuyer in today's market. Even though you probably have your choice of a dozen houses, let's say there are only two:

- House A had a routine treatment for termite prevention 4 years ago but had no signs of infestation.

- House B had a termite infestation and subsequence treatment and repairs 4 years ago.

After learning this, would you still consider house B? Would you bother doing the due diligence to make sure the contractors hired to do the repairs were qualified and that the proper permits and inspections were obtained if the repairs were structural (perhaps going as far as bringing in your own contractor/engineer to re-examine what was done)? Would you take this past problem into account when putting together an offer price? Or would you play it safe and simply red-flag the house and move on?

These kind of pest insurance policies are wonderful from the pest company's point of view but I cannot imagine homeowners would agree to them. Ridiculous.

 

[Paladin3]

An ounce of prevention is worth a pound of cure.

 

[bruceb]

If you know you are in a termite prone area, then get the preventive treatments done. Don't waste money on a so-called insurance with Terminex... If anything your homeowner's policy would cover it, especially if you can show proof that you took steps to prevent infestation and still got hit by termites. If that happened, I would also think about suing the company that did the yearly treatments as they either missed the temites initially or misapplied / used wrong products in the treatment.

I would buy home "A" especially if a competent inspector finds no signs of insect damages.

 

[nanette1985]

It depends on your area & your market. In my immediate area (expensive suburbia with lots of termites) you'll find it difficult to sell a house if you don't have proof that you've had continuous termite protection. But the Terminix-type service includes regular preventitive treatment and inspections.

 

[weadjust]

Homeowner's insurance policy excludes termite damage.

 

[Wyndru]

Yeah, I'm about ready to drop terminix. We had swarmers in our house one year, so we had them come out and install the bait stations. They would come out each month and check the stations, and each time tell us that no activity was found. The next year, swarmers appeared again. Still no activity found in the traps. I asked them what was up, and they said it takes 2 years before activity shows up.

2nd year, still had swarmers. I started opening the bait stations after hearing a rumor that they only bait 1 station and move it around, and sure enough, only 1 station had the bait, and it wasn't even on the same side of the house as where the swarmers were appearing. Apparently they only bait one station at a time, and cycle it around your house each time. Bullshit.

 

[alkemyst]

If you know you are in a termite prone area, then get the preventive treatments done. Don't waste money on a so-called insurance with Terminex... If anything your homeowner's policy would cover it, especially if you can show proof that you took steps to prevent infestation and still got hit by termites. If that happened, I would also think about suing the company that did the yearly treatments as they either missed the temites initially or misapplied / used wrong products in the treatment.

I would buy home "A" especially if a competent inspector finds no signs of insect damages.

wow just wow.

 

[alkemyst]

Yeah, I'm about ready to drop terminix. We had swarmers in our house one year, so we had them come out and install the bait stations. They would come out each month and check the stations, and each time tell us that no activity was found. The next year, swarmers appeared again. Still no activity found in the traps. I asked them what was up, and they said it takes 2 years before activity shows up.

2nd year, still had swarmers. I started opening the bait stations after hearing a rumor that they only bait 1 station and move it around, and sure enough, only 1 station had the bait, and it wasn't even on the same side of the house as where the swarmers were appearing. Apparently they only bait one station at a time, and cycle it around your house each time. Bullshit.

Getting swarmers inside in a termite area means nothing.

 

[Wyndru]

Getting swarmers inside in a termite area means nothing.

I think you missed the point. I'm annoyed to see they only arm 1 station at a time, essentially reducing the effectiveness of the service to 1/18th. How are they supposed to know which side of the house to put the bait on without actually seeing termite damage? They stated the side with the termites was the most likely area infested with swarmers each season, yet the baited station was on the opposite side of the house.

 

[alkemyst]

I think you missed the point. I'm annoyed to see they only arm 1 station at a time, essentially reducing the effectiveness of the service to 1/18th. How are they supposed to know which side of the house to put the bait on without actually seeing termite damage? They stated the side with the termites was the most likely area infested with swarmers each season, yet the baited station was on the opposite side of the house.

you edited a detail out that has me believeing you didn't understand what they told you at the beginning. It's also interesting you were paying so much attention to the bait.

There are crooks in the world though.

Back to the terminix deal, they do a home inspection first...if you have termites they will require a treatment prior to bonding the home.

 

[Wyndru]

you edited a detail out that has me believeing you didn't understand what they told you at the beginning. It's also interesting you were paying so much attention to the bait.

I don't know what you mean by edited out a detail, but in the beginning we had some young kid sell us the product informing us that in 1 year we should see activity in the stations. Then after talking to the guy that comes to our house to check the stations, he said it could take 2 years or more. Interesting part about talking to that guy...he tried to drive away from me when I ran out of the door to try and catch him to ask him about it. Real classy.

I was interested in the bait after them stopping by month after month, and recording no activity. After doing some googling, I started seeing complaints about them only baiting only one station at a time. That's what prompted me to start opening the stations. By doing that I probably voided my contract, I'm aware of that, but at least now I know how this company does business.

There are crooks in the world though.

Don't be fooled, terminix are crooks. There are tons of complaints against them, just google their name and you'll see tons of people stating that they don't even get out of their trucks when they come to the house, they don't bait all the stations, etc...

I would stay away from them if possible, I wish I did before I spent 3 grand.

 

[IHateMyJob2004]

I laughed when I saw the commercial. They are trying to commoditize termiite control which is hilarious.

Stupid as hell, but how many bottled water comapnies are there?

 

[cerebusPu]

Apparently they only bait one station at a time, and cycle it around your house each time. Bullshit.

Im not sure if they disclose they only bait one station at a time. if they dont and expect you to think they are then thats pretty scammy. it would be in their best interest to minimize the trips, the work, and keep making the same amt of money. they do 1/18th the labor, check only 1/18th of bait stations, and charge $30 each month. Also by reducing the detecting ability by 1/18th, they also reduce the percentage of payouts (treatment and repairs) they have to do. I can see how they have to do that because if they bait 18 stations and inspect them each month, you'll have to pay way more than $30 for time and labor.

I think its a business plan that doesn't work with termite treatment. You have to provide less effective service, charge more money, and skimp on the labor to make the same amount of money as everyone else in the business. It's the same with this watch company at the local mall. I asked them to replace a watch battery and they said its $75 for our yearly watch battery insurance plan and thats the only way they do watch battery replacement. freak! i can get 10 watch batteries replaced somewhere else for that price.

My termite company charged $500 for first visit and $100 each year thereafter. Costs more for the first two years but I know i get the full treatment each time and i'm pretty sure it'll be an ongoing battle with termites being on a mature wooded lot.