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There are two types of termites in Arizona that can damage homes. Although not as voracious as in some wetter parts of the country, both species can do serious damage. The important thing to know is that the treatment to remove them is different, depending on which type of termites you are dealing with.
They eat cellulose material, including wood, plants, carpet, insulation, cardboard, sheetrock paper, fabric and animal feces. These termites need moisture to survive so our dry climate helps contain this species from doing too much damage. These termites live in both soil and wood. One good way to detect them is to watch for mud tubes which, many times, can be spotted in drywall.
Unlike subterranean termites, drywood termite colonies do not need contact with moisture in the soil nor any other water source. They can be difficult to detect because their colonies reside entirely inside the wood, and therefore, no mud tunnels will be seen. Instead, it is best to watch for fecal pellets, which are kicked out of the colonies by workers, directly below where the infestation is taking place.