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Bastian Kneuse
  • Rental Property Investor
  • San Francisco, CA
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Termite Bond Alabama Investment Property- yes/no?

Bastian Kneuse
  • Rental Property Investor
  • San Francisco, CA
Posted Jul 25 2019, 08:59

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!

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