Protect yourself from seismic risk with a multi-risk insurance. Find out how

The imminent risk of earthquakes in Portugal: How to be protected

With the latest earthquake that occurred in Portugal, the question arises: What could we have done differently to be better protected against this risk?  

The Portuguese Insurance Association (APS) has warned that the majority of homes in Portugal are not protected against the imminent risk of this phenomenon.

As such, we explain how you can protect yourself, protect your home and belongings, in case of an earthquake, through a comprehensive insurance policy. 

What is a home multi-risk insurance?

First of all, you should know that a home multi-risk insurance is a mandatory product to contract when buying a house through a home loan. So, if that's your case, just find out about the coverage you contracted, because if you don't have earthquake risk coverage, you can renegotiate the conditions to include it in the contract.

However, for those who do not have access to financing when buying a house, it is not mandatory to have this insurance contracted.  

But what is the objective of the multi-risk insurance then? This serves to cover damages that occur in your property or contents, as well as civil liability.

That is, if a claim occurs at the property, it is insured through a certain capital according to the contracted coverage.

This means that in the event of an earthquake causing damage to your property and belongings, the corresponding repair value will be provided by the insurer.

What coverages can be contracted in a multi-risk insurance?

When contracting a multi-risk insurance, there are base coverages provided by insurance companies, and the policyholder can then add others that meet their preferences and needs.

According to the Insurance and Pension Funds Supervisory Authority (ASF), the most common pre-determined coverages in a multi-risk insurance are:

• Repair of damage caused to the building, the own fraction or other fractions;  

• Occurrence of risks other than fire, such as floods, storms, and electrical hazards;   

• Repair of damage caused to movable property in the home;   

• Compensation for theft or robbery;    

• Civil liability of the policyholder and members of their household (if they need to compensate third parties for damages caused);   

• Indemnities for the death of the insured or spouse, as a result of fire, lightning strike, explosion or theft, when it occurs in the home.    

However, you can add the additional coverage you need, such as coverage for seismic phenomena.  

However, note that the premium to be paid on insurance will depend on the coverage you choose.

Do you want to hire a multi-risk insurance or add earthquake coverage to yours? Contact an insurance broker from Poupança no Minuto and leave everything on our side, at no cost. Save yourself and talk to us now: