Termites

• Termites are among the most serious of structural pests.Brand X Pictures/Brand X Pictures/Getty Images
  
  One of the biggest concerns with wood mulches near a foundation is termites. Wood and other organic mulches won't attract termites, but gives then an additional habitat near your home if they're already in the area. Wood and organic mulches hold much more moisture in the soil than inorganic mulches. Termites, along with other pests, need moisture to survive and thrive in the moist environment.
  
  

Other Pests

• Millipedes don't bite or transmit diseases but can infest in large numbers.Jupiterimages/liquidlibrary/Getty Images
  
  Millipedes, centipedes and pillbugs thrive in the moist conditions mulch creates. Mulch placed close to or touching your foundation can harbor these pests, allowing them access to your home. Although these creatures aren't structural pests or bite or sting, they can still infest in great numbers and become a nuisance inside your home. Organic mulches can also allow access to other pests such as mites, earwigs and other arthropods.
  
  

Other Problems

• Artillery fungus is a disease that clings to your home's siding. This fungus is often present in dead and rotting wood. Infested wood is sometimes ground up with the mulch. As the spores spread, the fungus clings to your home and is nearly impossible to get rid of without leaving a stain. This fungus reproduces rapidly in cool, moist conditions. The moisture created by organic mulch also creates other mold and fungal diseases on your foundation and home. When dealing with pests using the mulch as a gateway to your home and foundation, mulch creates yet another problem when trying to combat the issue. Many spray insecticides cling to the wood mulch instead of making contact with the soil, preventing some of these pests from making contact with the insecticide.
  
  

Solutions

• Instead of using a wood or organic mulch against your foundation, stop the mulch layer 1 to 2 feet from your foundation. For aesthetic purposes, you may want something there besides bare soil. Place a thin layer of inorganic mulch that drains well, such as gravel or rocks, in this area.