Termites never sleep and can devour a rafter tail in just one year. Nationwide, they cause an estimated $5 billion in damage annually. Meanwhile, fungus leads to wood rot, and according to Termite Terry Singleton’s termite licensing preparation guide, one out of every ten trees cut down is used to replace fungus-damaged wood.

The True Cost of Termite and Fungus Damage

While termite treatments can be expensive, the real financial burden comes from wood repairs caused by unchecked termite infestations or moisture-related wood rot.

Since COVID-19, lumber prices have surged and remain significantly higher than pre-pandemic levels. Understandably, homeowners hesitate to repair termite and fungus damage due to these rising costs.

Should You Treat or Repair First?

A common question from homeowners is whether they should treat the termites first or replace the damaged wood first. The answer depends on the situation:

• If treating locally: Always treat the infestation before replacing the wood. Termites may have spread beyond the visibly damaged area, so removing just one section won’t eliminate the colony.
• If fumigating: Consider replacing the wood beforehand—because it’s possible that the new wood might already be infested.
• For fungus damage: Never replace wood before correcting the moisture issue. Otherwise, the new wood will eventually rot as well.

Do You Have to Repair Termite-Damaged Wood?

If you’re not selling your home or refinancing a VA loan, you aren’t required to repair or replace damaged wood. However, there are several good reasons to do so:

1. Aesthetics – Termite and fungus-damaged wood is an eyesore that reduces your home’s curb appeal.
2. Prevention – Unsealed damaged wood is vulnerable to future termite and fungus infestations.
3. Avoid Paying for Redundant Treatments – If you don’t maintain a full-structure termite warranty, a future termite company may require re-treatment of previously damaged areas—even if they were already treated.
4. Better Inspections – If you do maintain a termite warranty, repairing damaged wood makes follow-up inspections easier. It’s harder to spot new infestations on wood that’s already riddled with old damage.
5. Financial Benefits – California home values consistently rise, and many homeowners have substantial equity. If you eventually sell, your proceeds may be taxed, but home repairs can help offset some of those taxes.

Bottom Line

• Address the root cause (termites or moisture) before repairing or replacing damaged wood—unless you’re fumigating.
• Fixing termite damage now prevents unnecessary re-treatment costs later.
• You’ll pay for the repairs eventually—either through a lower sale price or higher taxes. So why not enjoy a well-maintained home while you live in it?