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

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

With the recent earthquakes in Portugal, the question arises: What could we do differently to be better protected against this risk?  

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

As such, we proceed to explain how you can safeguard, protect your home and your belongings in the event of an earthquake, through a multi-risk insurance.

What is a multi-risk home insurance?

First and foremost, you should know that a multi-risk home insurance is a mandatory product to contract when buying a house through a housing loan. Therefore, if this applies to you, simply inform yourself about the coverage you have contracted, because if you do not have seismic 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 purpose of multi-risk insurance then? It serves to cover damages that occur in your property or contents, as well as civil liability.

In other words, if a claim occurs on the property, it is insured through a certain amount depending on the coverage contracted.

This means that if an earthquake occurs causing damage to your property and belongings, the corresponding value for repairs will be provided by the insurance company.

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

When hiring multi-risk insurance, there are base coverages provided by insurers, and policyholders can then add others that meet their preferences and needs.

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

• Repair of damages caused in the building, in the own fraction or in other fractions;    

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

• Repair of damage caused to the movable property of the residence.   

• Compensation for theft or robbery;    

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

• Compensation for death of the insured or spouse, as a result of fire, lightning strike, explosion, or robbery, 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.  

Want to hire a multi-risk insurance or add seismic risk coverage to yours? Contact an insurance mediator from Poupança no Minuto and let us take care of everything, at no cost. Save yourself and talk to us now: Poupança no Minuto