If termites turn up on a Miami home purchase, who pays?

It depends on which contract you signed. Under Florida's As-Is contract, the seller has no obligation to treat termites or repair damage, but you can cancel during the inspection period and get your deposit back. Under the standard FR/BAR contract, the seller generally pays to treat wood-destroying organisms and repair the damage, up to a capped percentage of the price. Either way, a WDO report only shows what was visible on inspection day, and homeowners insurance almost never covers termite damage.

By Giovanni Altamiranda | October 9, 2026

Termites are one of the few surprises in a Miami closing that can cost real money after you own the house. You can't see most of the damage, your insurance won't cover it, and the paperwork that is supposed to protect you has limits most buyers never read.

Here's how the Wood-Destroying Organisms (WDO) inspection works, who pays under each Florida contract, and what to do when the report comes back with a finding.

What a WDO report actually tells you

The WDO report is a standardized Florida form (FDACS 13645) completed by a licensed inspector or pest control operator. It looks for evidence of termites, powder post beetles, old house borers, and wood-decaying fungi.

Read the fine print on the form itself. Three lines matter most:

• It covers only areas that were visible and readily accessible on the day of the inspection. Anything behind finished walls, under floor coverings, inside insulation, or blocked by stored items is excluded.
• The form states plainly that it is not a structural damage report. It tells you whether wood-destroying organisms were found, not whether your framing is sound.
• It is not a guarantee that the property is free of wood-destroying organisms. It is a snapshot of one afternoon.

That distinction matters. A clean report means no evidence was visible. It does not mean the house is termite-free. If the report lists areas as obstructed or inaccessible, those areas are a blank, not a pass.

I tell every buyer the same thing: read Section 3 of the report, the part listing what the inspector could not see. That's where the real questions live.

Drywood versus subterranean: why it changes the conversation

Florida has more termite species than any other state, per UF/IFAS. Two matter most when you're buying.

• Subterranean termites nest in the soil and travel up through mud tubes. They can cause damage quickly, so a finding here is time sensitive.
• Drywood termites live inside the wood itself with no soil contact. Colonies are small and slower, but they can be scattered through attic framing, trim, and cabinetry. When several colonies are found throughout a structure, whole-house tenting (fumigation) is often the most cost-effective fix, according to UF/IFAS.

This is relevant in Coral Gables, Pinecrest, South Miami, and Palmetto Bay, where plenty of the single-family stock has decades of wood framing, attics, and original trim. Age alone isn't a verdict. Brick and masonry homes still contain wood framing, and newer homes can be infested too. It just means the WDO report deserves a careful read rather than a skim.

Who pays: the As-Is contract versus FR/BAR

Most Miami buyers use one of two Florida Realtors/Florida Bar contracts. The termite rules are very different.

• As-Is contract: The seller is generally not obligated to treat termites or repair damage. Your protection is the inspection period, typically up to 15 days for a residential purchase. If you're unhappy with what the inspections show, you can cancel in your sole discretion and recover your deposit. Your cost is the inspections themselves.
• Standard FR/BAR contract: The seller is required to pay to treat wood-destroying organisms and repair the resulting damage, up to a capped percentage of the purchase price. Brokerage summaries describe that cap as typically 1.5%, but confirm the exact paragraph and percentage on the version of the form in your contract. If the cost exceeds the cap, the parties have to negotiate or someone can walk.

Read your own contract. The form version, any riders, and any negotiated changes control, not what a blog post says, including this one.

On a $1.5 million purchase, a 1.5% cap works out to about $22,500. That sounds generous until you price a whole-house tent job plus carpentry and drywall repairs on a larger home. Rough national cost ranges run about $1 to $4 per square foot for tenting, and about $6 to $8 per square foot for localized treatment, per Fixr (last updated January 2025). Miami pricing varies by home size and access, so get written local quotes instead of guessing.

What to do when the report finds termites

A finding is not automatically a reason to walk. It's a reason to get specific before your inspection period ends.

1. Get a treatment quote and a repair estimate separately. Treatment kills the termites. Repair fixes what they damaged. They're different line items from different trades.
2. Bring in a licensed contractor or structural professional. The WDO form itself says further investigation by building trade experts is needed to judge structural soundness.
3. Ask for the termite history. Ask the seller for prior treatments, warranties, and whether any termite bond or warranty transfers to you.
4. Choose your lever. Depending on your contract, that could be a seller-paid treatment, a price reduction, a credit at closing, or cancellation within the inspection period.
5. Watch the calendar. Inspection period deadlines are strict. A finding on day 14 of a 15-day period leaves very little room to negotiate.

If the home needs other work too, compare the total. Termite findings often show up alongside roof, permit, or moisture issues, and they should be weighed together. If you haven't already, read my guide to open permits when buying a home in Miami-Dade before you finalize your repair requests.

Insurance won't bail you out

Standard homeowners policies in Florida generally exclude termites and other wood-destroying organisms, because insurers treat them as a maintenance issue rather than a sudden, accidental loss. Some policies offer limited endorsements for hidden decay, usually with low sublimits. Check your own policy language before you close.

That makes your inspection period the main protection you have. After closing, treatment and repairs are generally yours. For a fuller look at how the rest of your insurance budget works, see what home insurance actually costs in Miami.

If you're financing, your lender may also require a WDO report as part of underwriting, and the timing window varies by lender. Ask your loan officer early so the report doesn't become a closing delay.

Budgeting it into your closing

Even when termites aren't found, the WDO inspection is a line item. A one-time inspection averages roughly $150 to $350 nationally (Fixr, January 2025), and general home inspections in Florida often run several hundred dollars. Plan for both. For the full picture of what shows up at the table, here's my breakdown of closing costs in Miami for buyers.

As of July 2026, Miami Realtors data show Miami-Dade single-family homes at about 4.8 months of supply with 45 days to contract at the median. That's countywide, and the $1 million-plus segment behaves differently, but the practical point holds: in this market, buyers who keep their inspection period intact still have leverage to ask questions. Don't waive the one tool that lets you find out what you're buying.

Frequently Asked Questions

Does a clean WDO report mean a Miami home has no termites?

No. The report only covers areas that were visible and readily accessible on the inspection date, and it states it is not a guarantee against wood-destroying organisms. Concealed framing, areas behind finishes, and obstructed spaces are outside its scope.

Can I cancel a Miami home purchase because of termites?

Under Florida's As-Is contract, you can generally cancel for any reason during the inspection period and recover your deposit, so termite findings are a valid reason to walk. Under the standard FR/BAR contract, termite and repair provisions work differently, so check your contract's terms and deadlines before deciding.

Does homeowners insurance cover termite damage in Florida?

Almost never. Standard policies generally exclude termites and other wood-destroying organisms as a maintenance issue. A few insurers offer optional endorsements for hidden decay, usually with small sublimits.

How much does termite treatment cost in Miami?

It varies widely by termite type and home size. Rough national figures run about $1 to $4 per square foot for whole-house tenting and $6 to $8 per square foot for localized treatment (Fixr, January 2025). Get written local quotes for treatment and for damage repair separately.

When do termites swarm in South Florida?

UF/IFAS reports winged drywood termite swarms from about March through June, with South Florida activity starting as early as late February. Droppings from drywood termites can appear year-round, so an October inspection can still find them.

Your next step

A WDO report is a useful tool with narrow limits. Read what it couldn't see, know whether you're on an As-Is or FR/BAR contract, and get treatment and repair quotes before your inspection period closes.

If you're thinking through this for your own situation, I'm happy to walk you through it. No pitch, just a straight conversation. Schedule a free consultation at moveupmiami.com.

This content is for informational purposes only and does not constitute legal or financial advice. Consult a licensed professional for guidance specific to your situation.

Giovanni Altamiranda, NMLS# LO52044, Licensed Mortgage Loan Officer, Columbus Capital. This is not a commitment to lend. Loans are subject to borrower and property qualifications. Rates and program guidelines subject to change without notice.

About Giovanni Altamiranda
Giovanni Altamiranda is a Miami-native real estate advisor at LUXE Properties, a team that closes over $1 billion in annual sales volume, and a licensed loan officer with Columbus Capital. With 11 years of experience and designations including SRS, ABR, and RENE, Gio specializes in the southern Miami suburbs: Coral Gables, Coconut Grove, Pinecrest, South Miami, Palmetto Bay, Key Biscayne, and surrounding neighborhoods. He works exclusively with move-up buyers and relocating families in the $1M–$5M range, and is recognized as a top agent on Zillow. Rather than pushing a transaction, Gio's approach is advisory, helping buyers and families work through the real tradeoffs so they can make the decision that's right for them, not just right now. Born and raised in Miami, he brings firsthand knowledge of the neighborhoods, commutes, and market dynamics that out-of-town agents can't replicate. His dual license as both advisor and loan officer means clients get a cleaner, faster transaction with no surprises at the closing table.