LANDLORD'S & RENTERS INSURANCE IN PORTUGAL.
LETTING INSURANCE IN PORTUGAL FOR EXPATS IN ENGLISH.
RENTING OR LETTING YOUR PROPERTY IN PORTUGAL.
Using your property in Portugal as a potential additional source of income can have its issues. Protecting yourself with the right type of letting insurance can help mitigate some of them.
Recent years have seen some clamping down on private property rentals in Europe as more and more people rent their properties to improve their income. There is no exception in Portugal. With commercial enterprises like Airbnb making rentals easier and online, regulation has been needed to protect the property owners and the tenants.
Private rental contracts in Portugal are, by law, meant to be for a minimum of 12 months. Even if the rental period is only for a few days or weeks, the rental contract must adhere to the law and provide a contract for a 12-month period.
LANDLORDS INSURANCE IN PORTUGAL GUIDE.
As an additional stream of income, letting out your property in Portugal can be a welcome boost to the coffers, but can also be expensive. It is essential that you have the right type and cover for your rental property in Portugal to protect yourself, your property and the tenant.
PUBLIC LIABILITY INSURANCE IN PORTUGAL FOR RENTED PROPERTY.
Liability insurance for Landlords often has low premiums, but also have very low levels of cover. €150,000 of cover could leave you dangerously exposed to any serious or meaningful claim. One has to consider that litigation, which is more and more common these days and in a foreign language, in a foreign country, for large amounts, can have serious consequences.
INSURANCE TO COVER LOSS OF RENTAL INCOME ON RENTED PROPERTY IN PORTUGAL.
Some insurance companies will provide you with the additional cover of protecting you from loss of income in the event of a claim. This can be the case in the event of fire or storm damage, whereby you may well need to spend several months completing major repairs.
EMPTY PROPERTY INSURANCE IN PORTUGAL.
With the ever-present Covid 19 pandemic, many rental properties in the more prominent tourist areas of Portugal and the Algarve regions, have been hard hit with travel restrictions causing cancellations.
These cancellations have had knock on effects, whereby property is being left vacant for longer periods than expected. Your rental property insurance may have a clause which specifies the maximum period that your property can be left empty in any one period. If your property is left vacant for longer than the specified period, you may find that any claims may be null and void.
DOES YOUR PROPERTY RENTAL INSURANCE IN PORTUGAL HAVE EMERGENCY CALL OUT SERVICES?
Renting a property during normal times can often be difficult, competition is fierce and from time to time your property may be vacant. Your electricity and water bills are probably being paid monthly on a direct debit basis with your bank.
Undetected water leaks will only become known once you receive a larger than normal bill and can be a nightmare and time consuming to locate. Our property rental and landlords insurance products offer a 24-hour 365-day a year emergency call out service, even if you are not there.
This means that your rental property can be made secure by a legal, professional repairer, allocated by the insurance company, if you are not there, and emergency repairs carried out. This gives you peace of mind knowing that if a problem does occur, at least your property is protected as quickly as possible.
Excessive water bills from a water leak under or within the property can be covered up to a maximum of €2,000, as well as having the repair carried out.
ACCIDENTAL DAMAGE COVER FOR RENTAL PROPERTIES IN PORTUGAL.
We can provide accidental damage for rental properties in Portugal, but it is not something that most Portuguese Insurance Companies will offer. All risk and Jewellery insurance is not available for rental properties in Portugal.
Tenants and those renting properties can get their own Jewellery and all risks cover with accidental damage insurance cover, as well as contents cover. This would be a standalone policy for the rental person to contract.
TALK TO OUR PROPERTY RENTAL INSURANCE EXPERTS IN ENGLISH.
With an ever-changing insurance market, we would recommend you request a call back and talk to one of our fully qualified insurance professionals and we will take you through the insurance cover that will best protect you and your property.
OVERSEAS PROPERTY INSURANCE PROVIDERS.
Whilst Expat insurance agents and brokers offer insurance in Portugal for rental and holiday homes to Expats, in their preferred language, always read the policy details. Where litigation for a claim for a rental or second home in Portugal might sound good in English, the claim and your property are based in Portugal and Portuguese laws may apply.
Make sure that they provide liability cover that provides for translations of documents and all legal fees to settle any claim.
MAKING A CLAIM ON LANDLORDS INSURANCE.
Some insurance companies apply a lot of red tape and require an infinite amount of information. You may be required to provide extensive details about the tenants employment, particularly in the case of non-payment of the rent or in claims seeking loss of rent. Copies of their bank accounts and references may be needed.
Hence the need to talk to us. We will give you the professional advice needed to make sure that you request the right information from any potential tenant.
We will also be there for you throughout the process and you will have a designated claims handler that you always keep you up to date with what is going on.
COMPARE RENTAL PROPERTY INSURANCE IN PORTUGAL.
Insurance is based on the quality of advice and the type of cover required for a particular property. Online comparison websites tend to offer you a basic, standard, non-specific insurance cover that they believe is a one size fits all.
Hence we are not on any comparison websites for any form of insurance. Rental property insurance for properties in Portugal are best tailored to suit what you actually do need, rather than have a mishmash of cover that might cover you in the event of a claim.
Most comparison websites are insurance intermediaries trying to promote their own products by professing to search and compare most, if not all insurance companies in Portugal. As far as we know, no such comparison websites or online facilities to compare a variety of insurance products in Portugal exist.
When we select an insurance product to suit your needs we will tailor it to the right coverage and you then you only pay for what you need.
Our due diligence and expert knowledge can greatly reduce your rental insurance premiums by only having the cover you need, rather than paying for items in a standard policy that may not apply to the type of insurance needed.
BUILDINGS AND CONTENTS INSURANCE FOR RENTAL PROPERTY.
Many of the rental properties in Portugal come completely furnished. Buildings insurance in Portugal, particularly for fire insurance is compulsory. Contents insurance for the contents belonging to the Landlord can be covered under the same policy and by combining buildings and contents insurance, can lower the premiums.
Calculate the buildings replacement value and the contents value at today’s market value for replacement. The insurance company will calculate the demolition or rebuilding costs as part and parcel of the quote.
Do not over insure or under insure the buildings and contents insurance as it will be reflected in the pay-out of any claim. If you have a property, buildings and contents insurance value of €100,000 and you insure it for €200,000, you will be over insured. In the event of a total loss, (actual value €100,000) your over insurance by 50% of the total property value means that you will lose 50% of the claim amount so you would only get paid out €50,000 in the event of that total loss. The same rules applies if you are under insured.
BANK INSURANCE POLICIES IN PORTUGAL.
Portuguese banks are not insurance specialists and will sell you over the counter products that are expensive and offer very little cover. These Bank insurance offers are mainly to protect the banks if you have a mortgage or loan through them. They are not interested in protecting you - only themselves and often have buildings only cover. Always read the terms and conditions, ask questions.
As in Spain, although totally illegal, Portuguese Banks are insisting that when you take a loan or mortgage with them against a property, that it is compulsory for you to take out one of their insurance products to protect the bank for losses. You do not, and it is not compulsory. We have heard and experienced clients trying to cancel or move away from the Bank’s insurance, only to be told that if they do, the bank will increase the loan interest rates to compensate.
Totally illegal, but you want the Bank loan or mortgage. You can take out private insurance and assign it to the bank to qualify for that loan or mortgage, with much better and proper cover that will provide you and the bank with proper protections. Better to be safe than sorry. Bank insurance in Portugal is not something that is tailored to suit your needs.
REDUCING YOUR LETTING INSURANCE PREMIUMS IN PORTUGAL.
Premiums for property insurance in Portugal will depend on the type, style, size, location and many other factors. Having Multi-locks on doors and windows, an alarm connected directly to the local Police station, outdoor cameras, wrought iron bars on windows and anti-lift devices on patio doors, can all contribute to reducing your premiums. Talking to an expert and getting tailor made policies are a good way to reduce insurance premiums for property rentals in Portugal.
So do Contact Us, we are here to help you and you are not under any obligation to purchase from us and we will not pressurise you after any consultation. We are here to help you understand the ramifications and guide and advise you as to the most suitable landlord insurance in Portugal for your property.
Some of the insurance covers that are most appropriate for landlords:
- Landlord’s civil liability insurance.
- Buildings Insurance.
- Contents insurance.
- Malicious damage insurance.
- Loss of income insurance.
- Accident and Injury insurance.
Thank you for taking the time to read our information on rental property insurance for Landlords. Our service is completely free and confidential and you are under no obligation to buy from us. We will call you back during office hours. Our advice is provided to help you better understand the nuances of property letting insurance in Portugal.
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Copyright Plegasus Europe S.L. All rights reserved - updated January 2021