Termite Damage and Its Coverage in Australian Insurance Policies

Australia is renowned for its diverse ecosystems, and when it comes to termites, they represent a significant risk to property owners. Termites cause an estimated AUD $1.5 billion in damages to homes and buildings each year, so you would think that termite insurance may be possible to obtain.

In fact, many property owners wonder if insurance companies provide coverage for termite damage under home and contents insurance policies. The short answer is, unfortunately, no, they do not. Let’s delve into the reasons why and consider potential solutions.

Termite Insurance – Why Don’t Insurance Companies Cover Termite Damage?

Termite Damage is Considered Preventable

The primary reason why termite damage is not covered under most Australian insurance policies is that it is generally seen as preventable. Insurance companies often draw a distinction between sudden and accidental damage versus gradual damage that could be avoided through regular maintenance.

For instance, a fire or a storm that causes immediate damage is an unexpected event that a homeowner cannot predict or prevent. On the other hand, termite infestation is gradual and often occurs due to neglect of regular maintenance or poor pest control measures.

Termite Insurance - Why Don't Insurance Companies Cover Termite Damage?

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Difficulty in Assessing Termite Damage

Another contributing factor is the difficulty in assessing the actual extent and timeline of termite damage. Unlike fire or storm damage, which are immediately visible, termite damage often goes unnoticed until it is quite extensive, making it hard for insurers to determine when the damage occurred and how it progressed.

High Likelihood and Cost of Termite Damage

Due to our warm climate in the Northern Territory, termite activity is quite high, increasing the risk for insurance companies. If insurance policies regularly covered termite damage, premiums would significantly rise to compensate for the high likelihood and cost of claims. Consequently, for reasons of affordability and risk management, most insurers exclude termite damage from their coverage.

Insurance Options for Property Owners in Darwin

While termite damage is not usually covered under home insurance policies, property owners have several ways to manage this risk:

Regular Pest Inspections

Termite damage is often a result of homeowners not realizing there’s a problem until it’s too late. Regular pest inspections by certified professionals, such as Jim’s Termite and Pest Control Darwin can catch infestations early, before they cause extensive damage. These inspections should be part of every property owner’s regular home maintenance schedule.

Termite Management Systems

There are many effective termite management systems available today. These include physical barriers, chemical soil treatments, and baiting systems. Many of these systems offer warranties or guarantees if installed by a professional, providing an additional layer of protection. For more information about termite management systems, call Jim’s today.

Specialist Termite Insurance

A few Australian companies offer specialist termite insurance policies, covering damage repair and the cost of treatment if a termite infestation occurs. However, these policies typically come with specific conditions and require ongoing termite inspections.


In conclusion, while it might seem counterintuitive that standard Australian insurance policies do not cover termite damage, the reasons boil down to risk management and the nature of termite damage itself.

However, with due diligence, regular inspections, and appropriate termite management systems, property owners can protect their investments against these pesky invaders.

Our very impressive termite warranty periods

All our Darwin technicians are fully licensed and qualified. We have accreditations with most of the chemical and termite systems available on the market.

This enables us to offer very impressive warranty periods on our services.

Termite damage is not covered by your standard home insurance. Knowing that you are getting extended warranty periods should be a very important factor when choosing a pest company.

Don’t risk paying over-the-top prices for a sub standard termite treatment. Let us supply you with a free quote today.

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