Home Insurance in Portugal: Coverage, Costs and Best Providers

Whether you've bought a flat in Lisbon, rent a townhouse in Porto or own a villa in the Algarve, sooner or later someone will ask you about home insurance – your bank, your condominium administrator or your landlord.

Portugal has one type of home cover that is compulsory by law, one that is compulsory in practice if you have a mortgage, and several optional extras that matter more here than in many countries (earthquakes and floods, for example). This guide explains what each one covers, what it usually costs and how to choose a policy.

In short:

• Fire insurance (seguro de incêndio) is mandatory for flats in a condominium building.
• Most people buy a multi-risk policy (seguro multirriscos habitação), which includes fire plus water damage, storms, theft and liability.
• Banks require multi-risk cover for mortgaged properties – but you can buy it from any authorised insurer.
• Earthquake cover is usually an optional extra. In Lisbon and the Algarve it's worth serious thought.
• Typical premiums: roughly €80–€300 a year for a flat and €250–€600+ for a house, depending on value, location and extras.

The types of home insurance in Portugal

Fire insurance (seguro de incêndio)

Under the Portuguese Civil Code, every unit in a building divided into separate flats (propriedade horizontal) must be insured against fire – both the individual flat and its share of the common areas. If an owner doesn't insure, the condominium administration can take out a policy and charge the cost back.

Fire-only policies are cheap but very limited. They don't cover a leaking pipe, a burglary or a storm – which is why almost nobody buys fire insurance on its own any more.

Multi-risk home insurance (multirriscos habitação)

This is the standard Portuguese home policy. It includes the mandatory fire cover and adds a package of other risks. Typical base cover includes:

• Fire, lightning and explosion
• Storms, floods and heavy rain (tempestades, inundações)
• Water damage from burst or leaking pipes (danos por água)
• Theft or attempted theft (furto ou roubo)
• Broken glass, mirrors and sanitaryware
• Damage caused by vehicles or falling objects
• Electrical damage to appliances (danos elétricos)
• Third-party liability – for example, if water from your flat damages the neighbour below
• Temporary accommodation if your home becomes uninhabitable

Policies are split into two parts, and you can buy one or both:

• Building (edifício) – walls, roof, floors, fixed installations, built-in kitchen, and your share of the common areas.
• Contents (recheio) – furniture, appliances, electronics, clothes and personal belongings.

Optional extras worth knowing about

• Earthquake cover (fenómenos sísmicos) – almost always optional and priced separately, often with a higher excess (franquia), typically a percentage of the insured value. Lisbon, the Lisbon coast and the Algarve sit in the highest seismic-risk zones in mainland Portugal; the Azores are also seismically active.
• Home assistance (assistência ao lar) – 24-hour plumber, electrician, locksmith or glazier for emergencies.
• Valuables – jewellery, art or collections above a certain value usually need to be listed separately.
• Legal protection (proteção jurídica) – help with disputes related to the home.
• Pets' liability – some policies extend liability to dogs and cats.

Car cover works differently: see car insurance in Portugal.

Do I need home insurance as a tenant?

There is no legal obligation for tenants to insure, and the building itself is the landlord's responsibility. But:

• Some leases require the tenant to take out contents and liability cover. Check your contract before you sign – see our guide to renting a flat in Portugal.
• If a leak from your washing machine damages the flat below, you can be liable. A contents policy with liability cover is cheap protection – often €40–€100 a year.

Home insurance and mortgages

If you buy with a Portuguese mortgage (crédito habitação), the bank will require multi-risk cover on the building for at least the reconstruction value, with the bank named as the beneficiary for the loan amount.

Two things to know:

1. You don't have to buy the bank's policy. Banks can't make the loan conditional on buying insurance from them. You can choose another authorised insurer as long as the cover meets the bank's minimum conditions. Banks may offer a lower spread if you take their products, so compare the total cost – loan plus insurance – over several years.
2. You can switch later. Many people save money by moving their home policy to another insurer after the first year. Tell the bank and send them the new policy before cancelling the old one.

Banks also require cover on the borrowers themselves – see our guide to life insurance in Portugal.

Buying rather than renting? Budget for the purchase taxes too — see property taxes in Portugal.

How much does home insurance cost?

Premiums depend on the insured capital, location, type and age of the building, security features and the extras you add. As a rough guide for 2026:

These are indicative ranges, not quotes. Online-only insurers are often cheaper for simple flats.

How much should you insure the building for?

Insure the reconstruction value – the cost of rebuilding the property – not the market price. Market value includes the land and location, which you don't need to insure.

Many insurers calculate reconstruction value per square metre using reference values published each year. Avoid underinsurance: if your home is insured below its real value, the insurer can apply the proportional rule (regra proporcional) and pay only part of a claim. Most policies offer automatic annual indexation of the capital – keep it switched on.

Main home insurers in Portugal

All the insurers below are authorised by the Portuguese insurance supervisor, ASF (Autoridade de Supervisão de Seguros e Fundos de Pensões). This list is for orientation and isn't a ranking.

Many brokers and comparison sites can quote several insurers at once. English-speaking brokers are common in Lisbon, Cascais and the Algarve. Before you hire one, check that they're registered with ASF – see our insurance services directory.

How to choose a policy: a checklist

1. Building, contents or both? Owners usually need both; tenants only contents.
2. Is the capital right? Reconstruction value for the building; realistic replacement value for contents.
3. Earthquake cover – included, optional or excluded? What's the excess?
4. Water damage – does it cover the leak and the cost of finding it (pesquisa de avarias)?
5. Theft – are there conditions (locks, alarm, forced entry) you must meet?
6. Excess (franquia) – a higher excess lowers the premium.
7. Exclusions – read the condições gerais and condições especiais, not just the summary.
8. Language – some insurers provide documents and claims support in English; ask before you buy.

How to make a claim

1. Limit the damage – turn off the water, cover the broken window, call the police if there's been a theft.
2. Report the claim (participação de sinistro) to the insurer as soon as possible – most policies set a short deadline, typically 8 days from when you became aware of it.
3. Document everything – photos, videos, receipts and, for theft, the police report (auto de denúncia).
4. Keep damaged items until the insurer's assessor (perito) has seen them.
5. Neighbours involved? If the damage came from another flat, both insurers will usually deal with each other directly.

If you disagree with the insurer's decision, complain first to the insurer, then to ASF or through the Livro de Reclamações (complaints book), which is also available online.

Common mistakes

• Insuring the purchase price instead of the reconstruction value.
• Assuming earthquakes are covered when they're not.
• Keeping the bank's policy for years without comparing prices.
• Forgetting to update the policy after renovations or buying expensive equipment.
• Letting the policy lapse after paying off the mortgage – you still need fire cover if you live in a condominium.

This guide is general information, not legal or financial advice. Insurance terms vary by insurer: always read the policy conditions before you sign.