Savvy Consumer: Termites Can Eat Up Your Home

Aug. 4, 2006 — -- "Eating you out of house and home." It's a phrase you can use quite literally if you're talking about termites -- and it can be even worse when you factor in the scams that termite inspectors often run.

Every year termites do $2 billion dollars worth of damage. The problem is so bad that homeowner's insurance doesn't even cover it. Some termite inspectors play upon this homeowner's horror and bug you with bogus estimates. I once did a hidden camera investigation at a home we knew did not have termites. We went undercover and invited termite companies to inspect and give us estimates.

One inspector wanted to charge us a couple hundred dollars to spray the soil around the house. He said it would "burn up" the termites. A university entomologist said that was ridiculous, because termites live beneath the soil so surface sprays are useless. The other company never even inspected inside our house, even though an interior inspection was required by state code. Nevertheless, the inspector proclaimed that we definitely had termites. He wanted $500 for a subterranean treatment.

If you're buying a brand-new home, you could face termite troubles, too. Your contractor will hire a termite subcontractor to treat the soil before building your home. Chemicals are injected into the soil to form a barrier so termites do not emerge from the soil and crawl up inside the walls of your home. Problem is, the chemicals used for these new home treatments are very expensive. Some unscrupulous subcontractors charge the contractor less than the chemicals actually cost. How can they afford it? They spray water on the soil instead of chemicals, leaving your home totally unprotected.

Scams like this are why you need to check out termite companies before you hire them. Contact your county and state consumer protection offices plus the Better Business Bureau to see if other consumers have complained. Then go a step further, because consumers may not realize they were cheated. Contact the National Pest Management Association to see if the company is a member. NPMA may also be willing to tattle on unsavory companies in your area. Finally, get estimates from three or four firms before plunking down any money.