When making the decision to live in Portugal and buy real estate there, it is important to know how to choose a home insurance. Indeed, as in other countries, home insurance will cover the risks associated with your home, including theft, fire and earthquakes. This last risk is important in a country with strong seismic activity like Portugal. However, care must be taken because the rules concerning home insurance for expats not the same as those in other countries. Good home insurance is not necessarily good coverage. How to choose your home insurance in Portugal ? What are the different types of coverage to insure your home in Portugal ? Lisbob, expats assistant in Portugal, tells you everything you need to know when choosing your home insurance in Portugal.
What is the purpose of home insurance in Portugal?
Home insurance is used to cover your home and what is there. This includes clothing, furniture, appliances, and other items. The insured can buy insurance that covers only the property or both. This type of home insurance also covers cases of death or permanent disability of the insured or his spouse.
Home insurance: how to choose the covers
One of the most important criteria for choosing your home insurance in Portugal is to analyze the different types of multi-risk policies it can provide, such as:
- Theft or burglary;
- Floods ;
- Storms ;
- Water damage ;
- Fire, lightning or explosion ;
- Earthquake and earthquake ;
- Cosmetic damage ;
- Public liability ;
- Electrical hazards ;
- Home assistance;
- temporary deprivation of housing;
Is it mandatory to have a home insurance in Portugal?
In Portugal as in other countries, home insurance becomes mandatory for anyone who contracts a bank loan to buy a house. Non-compliance with the obligation to take out home insurance in Portugal can lead to serious fines and convictions.
Home insurance in Portugal: how to choose online
In order to insure your home and specially to find a cheap home insurance in Portugal it is possible to save time and to do research online on the websites of different insurers. It's possible to do simulations with each of them to get the best coverage and price and choose the one that's right for you.
Here are some insurers in Portugal and the link to their simulator:
• OK Teleseguros;
How to choose a home insurance in Portugal : 7 tips
To find and buy the home insurance that suits you best in Portugal, it is important to follow several tips in order not to pay too much or not be sufficiently covered.
1. Do an assessment of what you need in terms of coverage
Before choosing a type of coverage for your home insurance in Portugal, you should ask yourself if some options are really necessary. For example, if you do not live in an area where there is a risk of storms or earthquakes, you should think before you commit to these insurance options if you do not need them.
For example, the cover related to theft, burglary or fire can be more easily subscribed. Many insureds also opt for multi-risk insurance. Evaluate your real needs before choosing from the vast blankets available on the market.
2. Compare existing offers on the market
Take advantage of your free time to search the Internet for the many home insurance offers available on the market and compare them. Conduct online simulations to determine which insurance is best for you, considering characteristics such as coverage type and price.
Once you have determined the amount you want to spend, it will be easier for you to delete options because you can remove those that exceed your budget.
3. Study the possible combinations of basic and complementary protections
To know how to choose home insurance with the best combination of covers, know that when you buy home insurance, your policy can be considered "basic", even if it includes protection against lightning, fires and explosions.
Although this package is basic, it can be customized with extra options. For instance options that protect against theft, if your home is located in a problem area where frequent flights occur. Once you have assessed the coverage you need, it will be easier for you to choose the additional coverage.
4. Define how much you plan to spend on home insurance
It is important to establish the amount you want to assign to your home insurance before making your choice. If, in your case, the respect of the insurance is obligatory because of the bank loan that you will buy your house, beware of the amount of the insurance that you mention and negotiate with the bank if you find the proposal too expensive.
5. Choose a known insurer on the market
It is best not to take a risk and opt for an insurer that already has a reputation and credibility, which will reduce the risk that something goes wrong. Get closer to an insurer that has a good position in the market.
6. Life insurance and unemployment insurance can also be an option
Although many homeowners often use fire insurance and property and casualty insurance, there are also some who use other types of insurance or who are required by banks for bank loans, such as:
In Portugal, financial institutions generally require life insurance to guarantee payment of the credit in the event of death or disability of the debtor.
This is sometimes a loan guarantee for the property that is required by the banks. It is better to take out this insurance with the bank from which you have applied for the loan to buy the house, as it could benefit from a lower cost.
This insurance is used to protect the expenses related to the repayment of the loan related to the property in the event of unemployment or sick leave, thus helping the Insured to meet his financial obligations with the bank even if he loses his income.
The unemployment insurance covers the expenses for a certain period (from 6 to 12 months), the duration of which is determined according to the situation of the insured and continues to produce its effects even if the Insured receives benefits from the Security for sick leave.
7. Negotiate the price of insurance
Once you have chosen the home insurance that suits you, talk to the insurance company and try to reduce the amount of your insurance. Ask if there are discounts or special offers for new customers, as this is a common practice in Portugal.