Termite infestation or restitution is not covered by building insurance. Your best assurance is to view "STOP TERMITES DEAD -Homeowners Online Video Guide"
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Fast Facts

Just one termite colony can have up to 45 separate nests with a million individual termites in each, at a radius of up to 100 metres. With the queen termite able to lay over 2000 eggs a day, if left unchecked and untreated the devastation can be profound.

Termites can attack any cellulose material. From their inspections, Archicentre Ltd estimate the damage cost at $45 per Victorian or about $290million in 2005 alone. They rate the average treatment and restitution at $7,000 per infestation.

In unprotected (undeclared) Councils homeowners/buyers believe that there are NO termites. – Not a few, or some but NONE! 

There is no termite infestation or restitution building insurance available.
 
With growing density of population and home/building construction and planning this situation will get worse, particularly if left   unchecked in presently unprotected areas. 2030 policy may actually exacerbate matters.
Responsibility rests with Councils and State Government.

With just 15 Company statistics* out of 220+ sizable pest   management businesses in Victoria, over 60,000   infestations have been recorded in Victoria. Over 40,000 of these has been in the metro area with 18,000 infestations still in   presently unprotected (undeclared) municipalities recorded. (even though several have only been able to provide the last 2-3 years). Duty of Care and responsible risk management demands designating all of Victoria to declared by State legislation.

Pest managers cited confirm that in overwhelming numbers where infestations are recorded no barriers were in place   (declared and undeclared areas).

If declared areas show a certain number of infestations which have deemed them declared, surely logic dictates that if this figure is equalled or surpassed by unprotected (undeclared) areas they should also be declared.

Subterranean termites (termites) are prevalent throughout the whole of Victoria, Australia.
Termites pose an economic risk to homes, buildings and structures in all Victorian municipalities.

Responsible termite risk management calls for all municipalities state wide to be declared as regions in which homes, buildings and structures are likely to be subject to termite infestation.
Redesignation of undeclared (unprotected) municipalities to declared status can simply be done, with little or no cost, by state legislation or individual council motion.

With growing density of population and home/building construction and planning this situation will get worse, particularly if left   unchecked in presently unprotected areas. 2030 policy may actually exacerbate matters.
Responsibility rests with Councils and State Government.