How do I assess and repair termite damage?

About a year and a half ago, I buy my first house. I have a pre-purchase termite inspection that comes up clear—no termites. At closing, the previous owner does disclose the fact that some “old termite damage” was discovered and repaired when they installed storm windows, but there was no sign of active... show more About a year and a half ago, I buy my first house. I have a pre-purchase termite inspection that comes up clear—no termites. At closing, the previous owner does disclose the fact that some “old termite damage” was discovered and repaired when they installed storm windows, but there was no sign of active infestation.

Moving forward 1 year, I have my annual termite inspection and it comes up clear—no termites again. Two weeks later, I find a bunch of dead swarmers on a windowsill in the garage.
I contact the exterminators; they come to the house look at the window and the surrounding wall (we also find several spots of damaged sheetrock).

The exterminators retreat the entire house and offer to fix the “visible damage” , basically just refinish the dry wall (my service contract is “full warranty” meaning they are supposed to fix all damage from any “current, active infestation”).

When I told them I thought we should open up the wall, they discouraged me and warned that they would not replace the drywall if I did not find any damage. The exterminator also assured me that I would not find and significant damage.

Against the exterminator’s advice, I open up a 10’ by 10’ area in the wall, approximately a month after treatment. I have not found any live termites (so apparently the treatment was effective) but the wall is full of mud and there are at least two or three studs that need replacing, plus lots of damage along the bottom and top of the wall.

Anyway, at this point, I’m not satisfied that I’ve found all the damage and I have absolutely no trust that my exterminator is acting in good faith. After all, the more damage I find, the more it will potentially cost him.

I really don’t know what to do next.
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