Multi-risk insurance: what is really protected in your home?

I am Andreia Marques, from the Insurance Mediation team, and in this article, we discuss a very important detail for those who own a home or are thinking of buying one: multi-risk insurance.

After storm Kristin and the fires that hit us every summer, it was found that in Portugal, about 47% of homes are uninsured, and consequently, many homeowners end up having to bear the losses alone. This happens because, by law, only fire risk insurance is mandatory, and only in buildings with horizontal property, such as apartments. Multi-risk insurance, which covers much more than fire, is not legally required. A house, for example, may not have any insurance contracted.

However, if you buy with a mortgage, the bank requires this insurance, regardless of the type of property and what the law says. It is a condition of the loan. The problem is that it usually only covers the building (walls), all the contents of the house are left out.

And here's what you might not know: you can take out multi-risk insurance outside the bank, as long as it has the coverages the bank requires; just check first if this affects the discount on your mortgage spread. Without an associated mortgage, you can take it out at any time and freely choose among insurers.

We compare the proposals from the insurers we work with — the price and conditions depend on the house and the coverages. An option to consider is building + contents multi-risk insurance, paying attention to the reconstruction value of the property. I've seen cases where the value indicated by the bank was not correct.

Imagine a house worth 200,000 € destroyed by a fire, requiring total reconstruction. If the insured value is only 100,000 €, only half is reimbursed, the rest is the owner's responsibility (Proportionality Rule).

When we talk about coverages, we refer to those that protect both the walls of the house and the belongings inside it:

• Contents: clothing, furniture, and appliances
• Damage caused by water, storms, or earthquakes
• Electrical risks
• Vehicles parked in the garage
• Civil Liability

See all available coverages here and enhance the protection of your home.

Know that you always have the freedom to change and the right to be protected; just confirm if the change affects your mortgage conditions. Additionally, you can count on the support of our insurance and credit team in analyzing proposals and managing any claims.

See you soon,
Andreia Marques