Home Insurance in Portugal

Home Multi-Risk Insurance

Home multi-risk insurance is an insurance contract that provides coverage for buildings (main residences or secondary homes) and their contents against various risks such as fire, lightning, explosion, and more. It may also include optional covers for additional risks. It is intended for all types of houses – apartments, villas, buildings, owned or rented, whether you are a landlord or tenant. The insurance (Seguro Multi-Riscos) gives the property a wide range of additional coverages – besides the mandatory fire coverage for all houses in the horizontal property regime – providing a bigger safety level to the insured property. When a bank grants a house acquisition loan, it obligates its clients contractually to include a Home Insurance for the property, besides a Life Insurance policy for the loan holders, as mentioned above in this guide. But even in the cases where there isn’t an associated credit agreement, the Multi-Risk insurance is an important investment that can be a great help for homeowners in the case of unexpected events such as a flood or a burglary.

Multi-risk insurance and coverages

Multi-risk insurance includes a set of general, predetermined covers to which it’s possible to add other complementary covers. The contracted coverages are the main factor that determines the insurance premium. The basic contract covers:

• Fire, even if caused by negligence.
• Damage caused by efforts to extinguish the fire.
• Heat, smoke, vapor, or explosions that follow a fire.
• Fire, lightning or explosion Accidental fall of fixed furniture
• Water damage
• Theft or robbery Theft or robbery of valuables
• Owner/tenant/occupant liability
• Family liability
• Malfunction detection and repair Electrical risks

What optional coverage is available?

Optional coverages may include:

• Malfunction detection and repair Electrical risks
• Home insurance has extra covered that protect people, pets, and goods, such as electronic devices or sports equipment, even outside your home.
• Earthquakes
• Others depend of insurer

What types of property can be insured?

• Immovable Property: The building and its fixed installations.

• Movable Property (Contents): Furniture, electronics, valuables, jewelry, special items like artwork and collections (when included in the policy).

What events are excluded from coverage?

The policy does not cover:

• War, terrorism, riots, or civil unrest.
• Damage from nuclear incidents or radioactive materials.
• Pollution or asbestos-related losses.
• Loss due to theft or robbery during or after a covered event (unless otherwise agreed).
• Fire due to natural disasters like earthquakes, unless covered under a special agreement.

Consider your house features and risks carefully and be aware that everything that is not on the policy coverage list (the so-called particular conditions of the policy) is excluded from coverage.

Multi-risk insurance premium

The Multi-Risk insurance premium is calculated according to the coverages contracted. Although in Portugal companies charge very similar prices for Home and Life Insurances, their policy proposals might differ substantially regarding the coverages and exclusions. So it’s implied that your decision regarding which insurance policy to contract shouldn’t be taken solely on its price. For instance, if the house to secure is old or located in an area of high risk of seismic phenomena (like Lisbon or Algarve), you should include coverage for those risks. Just as for Life Insurances, it’s important to scan the market offer and ask for several policy proposals from different insurance companies, brokers, or mediators. In order to make a realistic policy simulation, the main data you should gather about the characteristics of the property include:

• Year of construction;
• Location of the property (this will determine the risk of some natural occurrences);
• The value of the contents;
• Presence or absence of alarm systems and protection against theft;
• Surveillance in the building or villa;
• The purpose of the property: living or renting.
• Securing your possessions – the Seguro de Recheio optional feature

Premium Home Insurance options in Portugal

As an optional feature, not to be underestimated, the Multi-Risk Insurance offers the possibility of securing your personal belongings or possessions and all the existing furniture in the house (‘Seguro de Recheio’). The value of the insured capital in the Seguro de Recheio equals the replacement cost of the goods. In the insurance proposal, all the objects to be secured and their value must be clearly identified. If there are goods that are rare or of higher value like works of art and jewellery, they should be specifically identified. This can be done through photographs and descriptions of their characteristics, adding to an attributed value per piece – namely with receipts proving purchase and ownership of the items. In the event of a claim, the burden of proof lies with the insurance holder, who has to prove that the damage (such as a burglary or a vandalism act) occurred and that the property belonged to him or was in his custody. Hence the importance of keeping all documentation proving the existence and value of the insured goods.

What is the insured capital in the Multi-Risk Insurance?

When subscribing to multi-risk insurance, the insurance holder is responsible for establishing, at the beginning and along the contract duration period, the amount of the insured capital – the maximum amount the company will pay in case of a claim. Even if the damages your house endures are higher than the insured capital for the covered risk, the insurance company will only pay the contracted amount. This capital should correspond to the total reconstruction value. Thereby, when making any improvements to the property, the insurance holder should contact the insurance company or bank to update that value and guarantee full coverage. In the case of houses or buildings that are to be demolished or expropriated, the insured capital equals its Tributary Patrimonial Value (Valor Patrimonial Tributário). That value, expressing the real value of a property in a given year, is set out in the Municipal Property Tax Code (CIMI) and can be consulted in the Caderneta Predial (the document that contains all tax-relevant information about the property). At Pearls of Portugal, we simplify all the search procedures and put you in contact with our trusted insurance partners, thus achieving the best deal to boost your savings and grant you the security you need for your property.

What payment options are available?

• Annual payment (preferred and may offer discounts)
• Monthly payment (if arranged)
• Direct debit (offers 5% discount)
• ATM payment (no discount)
• Bank transfer: Not accepted

Items Covered Under Contents Coverage

Includes movable personal belongings commonly found in a household:

• Freestanding furniture and wardrobes
• Major household appliances (e.g., refrigerators, washing machines)
• Decorative items (e.g., carpets, wall art)
• Personal belongings (e.g., clothes, accessories)
• Valuable items such as:
  • Jewelry
  • Precious objects
  • Special collections or unique items

Items Covered Under Building Coverage

Includes items that are physically attached to the property and are typically not removed when the home is sold or rented:

• Kitchen equipment purchased with the property or later installed (e.g., extractors, built-in kitchen furniture)
• Fixed installations such as:
  • Air conditioning systems
  • Video surveillance and alarm systems
  • Water heaters, boilers, water pumps
  • Solar/photovoltaic panels
  • Central heating systems
• Built-in furniture and structural elements like:
  • Built-in wardrobes
  • Sanitary ware (sinks, toilets)
  • Doors and windows
  • Antennas

What documents are needed to request home insurance?

You will need:

• Tax registry and land registry document (“Caderneta Predial Urbana”)
• Citizen card/Passport ou other equivalent document
• Portuguese fiscal number (NIF)
• Email and mobile phone number
• Home address
• Floor plans and house budget (optional)
• The deed or rental contract  (owner use or lease)