Securing home insurance is crucial if you are buying a house in Portugal.
It helps protect and safeguard your valuable investment and ensures your belongings are protected – regardless of your mortgage situation. However, if you are buying a property for the first time, the policies and details of home insurance can get overwhelming.
Hence why, in this blog, we will guide you through the ins and outs of getting home insurance in Portugal.
Table of Contents
Why is Home Insurance Portugal Important?
Generally, house insurance Portugal is considered a valuable investment when buying a property. It safeguards your home and belongings against unforeseen circumstances such as natural disasters, theft, and damage.
Moreover, in Portugal, it is legally required if you are purchasing a property under horizontal property ownership.
There is usually a high financial loss associated with property damage. With home insurance Portugal, you can sleep peacefully at night, knowing you and your family can recover and rebuild swiftly.
Given the high potential financial damage associated with property damage or loss, home insurance Portugal provides peace of mind, ensuring that individuals and families can swiftly recover and rebuild their homes and lives in the face of unexpected adversity.
A Quick Overview of Home Insurance Portugal
There are two primary types of home insurance policies that homeowners and property owners can opt for. These are designed to provide protection and financial security in various scenarios:
Fire Insurance (Seguro de Incêndio)
Fire insurance, or “Seguro de Incêndio,” is the required insurance for property owners in Portugal. It is a basic plan that mainly covers damages directly caused by fires, including structural damages to the building.
This insecure can often also extend to cover other damaging incidents such as floods, electrical mishaps, storms, smoke, heat, storm, explosions, lightning, etc.
Multi-Risk Insurance (Seguro Multirriscos)
If you are aiming for a more comprehensive insurance policy, multi-risk or “Seguro Multirriscos” is the way to go.
This type of insurance offers a wider coverage, even allowing custom packages to each property owner’s needs.
The multi-risk insurance typically provides protection against a large variety of risks. Some examples include public liability, legal protection, contents coverage, earthquake protection, and even alternative accommodation expenses if need be.
Multi-risk insurance is usually recommended for cautious homeowners looking for an extra layer of security.
Companies That Offer Home Insurance Portugal
Fortunately, Portugal offers a large variety of home insurance companies for residents.
You can choose to purchase insurance directly from a local Portuguese insurance company or go for international providers with services in the country. Here’s a list of some popular insurance companies in Portugal:
Local Home Insurance Companies
International Home Insurance Providers
How Much Does Home Insurance Portugal Cost?
There are several factors affecting the price of insurance. These can include location, coverage, property value, additional coverage, and claim history.
Normally, you can expect to pay for a basic home insurance policy (seguro de incêndio) starting at about €70 a year in Portugal. However, this can vary depending on the mentioned factors.
On the other hand, multi-risk policies usually cost more, starting at around €120 a year. Again, the actual price can vary depending on different factors.
Home Insurance Portugal Coverage: Primary vs Vacation Home
Whether you own a residential home or a vacation house in Portugal, getting insurance is crucial to ensure the security of your property and assets.
However, there are certain details you need to keep in mind when you are purchasing a secondary residence (or a vacation home) that would remain empty for extended periods
For example, for vacation homes where you would stay for only a couple of weeks, insurance plans tend to be more costly. This is essentially due to the elevated risks of theft and vandalism for empty houses or those that lack regular surveillance.
Additionally, factors like the property’s size, the presence of outbuildings, and amenities like swimming pools can also influence the overall cost of your insurance premium.
How To Choose Your Home Insurance Company In Portugal?
There are several key factors you need to consider before selecting your home insurance Portugal policy. This way, you can ensure to get the right coverage that best fits your needs.
1. Invest Time Before You Invest Money:
It’s crucial that you understand the different types of coverage offered by companies. These include fire insurance, multi-risk coverage, and even additional options like earthquake or flood insurance.
Take your time to determine which coverage would safeguard your house against potential damages specific to your environment.
2. Assess Your Property
Investing in insurance means investing in your financial security.
Hence, it’s important to assess the value of your house, including its contents and any valuable belongings. This will help you determine the accurate coverage amount as anything lower can lead to financial losses in the event of a claim.
3. Understand the Coverage Limits
A limit refers to the maximum amount any insurance company will pay for a covered loss.
Before you decide on any coverage, pay attention to the amount limit. Make sure the limits cover the value of your property and possessions.
4. Decide on a Suitable Deductible Amount
This is the portion you’ll need to pay out of your own pocket before the insurance coverage kicks in. While choosing a higher deductible can lower your premium (the amount you pay for the insurance policy itself), it can require you to pay more in case of a claim.
5. Read the Policy Properly
Do not skip any details while reviewing the policy, especially the policy exclusions. This helps you understand what events or circumstances are not covered. Be aware of any limitations, such as coverage for specific high-value items or damage caused by certain perils.
6. Research The Home Insurance Company
Research the insurance company’s reputation before signing up with them. Look for reliable reviews as you need a smooth and efficient claims process incase of any tragedy.
7. Look for Packages
Ask your handlers for any discounts that are available. These could include safety features, security systems, etc. You could also look for bundles that give you access to other insurance policies such as auto insurance.
Documents Required For Applying For A Home Insurance Portugal
You will need to provide some official documents and information to the company if you apply for a home insurance Portugal. These may include:
Property Information
- Property address and description
- Property value or reconstruction value
- Property type (e.g., apartment, house)
Personal Information
- Your full name and contact information
- Date of birth
- Tax identification number (Número de Identificação Fiscal or NIF)
Ownership Documentation
- Proof of property ownership, such as a copy of the deed or purchase contract.
Find Your Perfect Property with us
Portugal Investment Properties is your gateway to smart real estate investments in Portugal, offering savvy investors access to an exclusive collection of carefully curated properties. Whether you’re searching for your dream home or a prime investment opportunity in Portugal’s prestigious market, we provide more than just listings – experience a personalized journey tailored to your aspirations.
Begin your journey to discover your perfect Portuguese retreat. Contact us today!
FAQs Home Insurance Portugal
Is home insurance mandatory in Portugal?
Yes, a minimum package, such as the fire insurance plan, is required by law if you wish to own a property in Portugal.
What risks can be covered under house insurance Portugal?
House insurance Portugal covers different risks depending on the policy. Basic fire insurance protects against fire damage and may include floods, storms, and explosions, while multi-risk insurance offers wider coverage.
How much is house insurance Portugal?
The cost of home insurance Portugal is dependant on a large number of factors. However, it generally starts at around €75 for minimum coverage.
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