Which organism is known for damaging wood from the inside out?

Termites are indeed known for damaging wood from the inside out. They are social insects that primarily feed on cellulose, which is abundant in wood and plant material. The most common type associated with structural damage is the subterranean termite; it creates extensive tunnels within wood, consuming it as they go. This behavior can lead to significant structural damage over time because the exterior may appear fine while the internal structure is severely compromised.

Termite damage is typically progressive and can often go unnoticed until major damage is present, making them particularly problematic in terms of pest control. Homeowners need to be vigilant about signs of infestation, such as discarded wings, frass (termite droppings), or hollow-sounding wood.

In contrast, while other organisms listed can cause damage to wood, they do so in different ways. For example, ants may infest wood but typically do not eat it as food; carpenter bees drill into wood to make nests but do not consume the wood itself as a food source. Termite fungi are associated with decay but don't actively take wood fibers for nourishment like termites do. Thus, the ability of termites to consume and create extensive damage within wood structures is what makes them the correct answer in this context.