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Eastern subterranean termites can do a lot of damage to a building�s wooden structural elements, and they are, unfortunately for homeowners, native to Georgia. Mortgage lenders and companies selling homeowner�s insurance may require termite inspections and termite treatments, especially when a home is about to change hands.
A Georgia termite bond guarantees that the homeowner protected by it will receive certain services, such as:
Some Georgia termite bonds are transferable to the new owner when the home is sold.
Georgia termite bonds are not mandated by any government entity. Pest control companies purchase them voluntarily to protect their clients and gain a competitive advantage over exterminators that don�t provide such protection. Clients putting their homes on the market may look for a pest control company offering a transferable termite bond, which is an attractive selling point for potential buyers.
Pest control companies purchase a separate bond for each client receiving termite inspection and remediation services. The amount of the bond (the bond�s �penal sum�) is entirely up to the pest control company.
The surety bond agreement for a Georgia termite bond is a legally binding contract between a pest control company (the �principal� in the language of surety bonds) and the company issuing the bond (the �surety�).�
The agreement is very specific about what services the principal is committing to provide while the bond is in force (typically two years).��Failure to provide those services or any other violation of the terms of the surety bond agreement can result in the homeowner filing a claim against the Georgia termite bond.
When that happens, the surety will make sure the claim is valid and may try to negotiate an amicable settlement. But if that�s not possible, the surety will pay the claim on behalf of the principal and give the principal some time to repay that debt, often in installments over a certain period of time.
The premium the principal will pay for a Georgia termite bond is a small percentage of the bond�s penal sum. The surety�s underwriting process takes into account the amount of the bond, the term (duration) of the bond, whether or not the bond is transferable, and the degree of risk the surety will be assuming in issuing the bond.
The greatest concern is the principal�s ability and willingness to repay the debt created by the surety�s advance payment of claims, so the principal�s personal credit score is a key factor in setting the premium rate. A principal with a high credit score will pay much less for a Georgia termite bond than one with lesser credit.
Request a convenient online quote today, or call us to discuss the Georgia termite bond you want to purchase for each client.
