INSURING YOUR RENTAL IN PORTUGAL

You have just taken possession of your new rented flat or house in Portugal. You should consider taking out a home insurance policy for your household contents.

As Deco Alerta points outhe Portuguese Consumers' Association (Portuguese Association for the Defence of Consumers or DECO). In the event of a claim, you can receive compensation for the amount needed to replace the furniture. Appliances and other household equipment. Which makes home insurance that includes cover for your possessions an attractive option.

What to insure in your rental property

To determine the value of the furniture in your home, make a list of all the items you own and note the amount you would have to pay. If you were to buy them when you signed or renewed your policy. Calculate 10% of this amount and add it to the total, to allow for possible price increases in the event of a claim.

If you make a claim, some policies may reduce the amount of compensation depending on the age of the goods. This is to take account of depreciation due to use. Some insurers will not pay compensation for damage caused to machinery or equipment purchased more than eight years ago (televisions and video players, for example) or more than five years ago in the case of computer equipment.

The value of assets is not constant over time. For this reason, the sum insured is automatically updated each year. On the basis of indices published quarterly by the Portuguese insurance and pension fund supervisory authority (Autoridade de Supervisão de Seguros e Fundos de Pensões or ASF). 

In terms of insurance capital for household furniture and equipment. Over the years, people usually buy new furniture, utensils, decorative items, household appliances, etc.