Photo of a house with pool to illustrate how it can be one's most valuable asset and why one needs home insurance.

Protecting your most valuable asset

Everything you need to know about home insurance in Portugal

Regardless of whether you own an apartment or a villa in Portugal, your home represents your most valuable asset – a sanctuary for your family. As the risks associated with nature and unforeseen events continue to increase, especially now the fire season has started, safeguarding your property becomes essential. To help you make informed decisions and save valuable time, we talked to Jim Player Insurance Agency and have compiled a concise guide addressing key aspects of home insurance in Portugal.

Legal obligations

Fire insurance is mandatory for buildings under horizontal ownership in Portugal. This insurance covers damages caused by fire to individual fractions and common areas. Owners of each fraction, known as ‘condóminos’, are responsible for securing this insurance to comply with legal requirements.

Contractual obligations

When acquiring housing through credit agreements, financial institutions often require clients to obtain home insurance. This insurance not only protects the property but also includes life insurance for mortgage holders. While fire insurance is the legal requirement for horizontal properties, mortgage contracts often specify the need for a comprehensive multi-risk insurance package.

Multi-risk home insurance coverage

A multi-risk home insurance package provides extensive coverage, including fire, lightning, and explosion protection. The base package also covers damage caused by floods, storms, water damage, subsidence, electrical hazards, theft, and more. Civil liability coverage and compensation for death resulting from specified incidents occurring within the dwelling are often included.

Additional coverages

To further customise your insurance, additional coverages can be added. These may include protection against vandalism, strikes, riots, accidental damage, loss of income, and seismic phenomena. By opting for these supplementary coverages, you can enhance the overall protection of your home and belongings.

Determining insurance prices

Home insurance prices in Portugal vary amongst insurers due to the free market system. Factors such as property characteristics (construction type, materials, location, security systems), chosen coverage options, etc, influence insurance prices. It’s important to compare quotes from different insurers to find the most suitable coverage at a competitive price.

Insurable value:

As a policyholder, you are responsible for determining the insured capital, which should correspond to the cost of rebuilding the property, considering construction type and other relevant factors. For contents insurance, it’s essential to accurately assess the replacement value of your belongings, including rare items such as antiques, works of art, and jewellery.

Choosing the right insurance:

Before finalising your home insurance policy, carefully review the covered and excluded risks, optional coverages, excess options, and factors that influence premiums. Seeking guidance from authorised agents or brokers can simplify the selection process, as they provide impartial advice tailored to your specific needs.

Protecting your home with comprehensive insurance is vital to secure your most valuable asset. By understanding the legal and contractual obligations, coverage options, determining insurance prices, and seeking professional guidance, you can make informed decisions that provide peace of mind for you and your family. Safeguard your home, protect your future.

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