So that fence isn't covered because some loophole in your insurance. It wasn't attached to the house! Stupid loopholes. Well here is what happens when you attach it to the structure Mr. paper pusher <-lowercase on purpose. Carpenter bees can and will burrow holes in that wood eventually. They will start at the fence then find a way to the structure. Once inside they can get into your load bearing walls. If severe, much like termite damage, they can affect the performance of the structure. So what is the solution? When you attach a wooden treated or untreated fence to any structure make sure you place aluminum flashing in between the fence and the structure. That way, once the bee hits the flashing it is game over. But what about moisture problems behind the flashing?!? Yep, you've introduced a new problem. You could seal the back with caulk or silicone or you could build from a builders perspective and build whichever way you think is best and not to appease some dude that shows up trespassing with a clipboard. How's that working for ya? In the lowest two pics, this fence was built with a fence post installed next to the structure and the wood was installed "hovering" over the structure allowing for an air gap and a stop for Mr Carpenter Bee. Solved!