In Portugal, there are some mandatory insurance policies for property owners, especially when it comes to buildings under horizontal property regime. Here are the main mandatory insurance policies:
1. Fire Insurance
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Mandatory Nature:
This insurance is mandatory for all buildings under horizontal property regime, according to article 1429 of the Civil Code. It must cover not only the autonomous fraction, but also the common parts of the building, such as stairs, elevators, and garages.
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Coverage:
Fire insurance may be contracted in the “Fires and Elements of Nature” modality or integrated into a multi-risk insurance. The latter offers broader coverage, including other types of damages besides fires.
2. Multi-Risk Home Insurance
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Recommendation:
Although not mandatory by law, multi-risk insurance is highly recommended. It covers a variety of risks, including fires, floods, theft, among others, providing broader financial protection for the owner.
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Condominium:
In buildings under horizontal property regime, insurance for common areas is the condominium’s responsibility. The condominium may opt for insurance that protects both autonomous fractions and common areas.
3. Life Insurance (for Mortgage Credit)
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Mandatory Nature:
It is not mandatory by law, but is generally required by banks when resorting to financing for housing purchase. Life insurance ensures that, in case of death or disability of the borrower, the loan will be paid.
Additional Considerations
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Affordable Rental Program:
If a property is integrated into this program, there are additional mandatory insurance policies, such as insurance for non-payment of rent, insurance for involuntary income loss, and insurance for property damage.
These insurance policies are essential to protect property owners’ financial interests and ensure property safety, covering potential damages and liabilities.