Does home insurance cover termite damage?
No — Budget Direct Home Insurance does not cover loss or damage caused by termites (and other insects, birds, lizards, rodents, or vermin).
Home insurance is designed to cover loss or damage resulting from sudden or unexpected events (e.g. storm and fire).
In contrast, termites are found virtually everywhere; they are a known and ever-present risk.
The CSIRO recommends properties be inspected at least annually to detect termites before they do serious damage.
When insuring your home, it should be in good condition and have no defects or faults that pose a risk to what’s covered under your policy.
This includes any existing termite damage that, unless it’s fixed, could worsen the damage caused by an insured event (e.g. a storm).
Indeed, if your home is not in good condition at the time of the loss, it may affect your cover and ability to claim.
