A termite bond is a contract between a homeowner and pest control company that provides termite treatments and inspections for the life of the bond. While not legally required in some states like Georgia, it is recommended that home buyers obtain a termite bond for a property due to the damage termites can cause. The bond offers protection through free retreatment if termites return and potential compensation if damage occurs. It also gives buyers peace of mind knowing the home is protected against the destructive wood-eating insects.