Hearing or seeing a woodpecker at work is quite fascinating, but this is not the case when the bird is working on your house. Woodpeckers have amazing eyesight and hearing, and they use this to locate bugs to eat. Unfortunately, this means that if you have any type of wood boring insects inside the wood of your home, a woodpecker could try to extract them. While you don’t want to have insects inside of your walls, the damage that a woodpecker does to your home is much worse.
Of course, the simple solution is to try to remove the insects, making your home less interesting to a woodpecker, but this might not be so easy to accomplish. If you are unable to kill the bugs with pesticides, it might be necessary to get help from an exterminator.
You could also limit access to areas of your home where woodpeckers appear to be attracted by use of sturdy netting.