Termites in store-bought or home-made mulch pose a danger to human structures if the mulch is laid close to a foundation. The moist conditions created by mulch are favorable to termites.
Mulch can be used around shrubs and other plants near a home, as long as it is not too close to wooden structural elements. Mulch in contact with wood allows termites to enter the adjoining structure. As of 2009, the University of Florida recommends a gap of 6 inches or more between mulch or wood compost and any wooden part of a structure.
Termites in a compost pile may look alarming, but don't pose an infestation danger if handled carefully. These insects will not hurt live plants or trees, and can't get into a home if the compost pile isn't close by. Never transport compost from an infested pile into or near a home or other wooden structures.
Prevention is best, but infested mulch can be treated to remove termites. Heating mulch to 120 degrees Fahrenheit for 30 minutes or more will kill these insects. Mulch may also be treated with boric acid solution or insecticides such as chlorpyrifos, as long as the treatment fully saturates the mulch.