When you take out home insurance in Portugal, you will be asked: building only («paredes») or contents too («recheio»)? The difference is simpler than it sounds. Imagine turning the house upside down: whatever falls out is contents, whatever stays attached is building.
Building: the home itself
This is the structure: walls, roof, floors, doors, windows, plumbing and wiring. It also includes what is fixed in place, such as kitchen units, built-in wardrobes, bathroom fittings, air conditioning and solar panels. In a flat, it includes your share of the common parts of the building.
Contents: what you keep inside
Furniture, appliances, clothes, the television, the computer and personal belongings. Jewellery, works of art and other valuables usually have their own limits, so it is worth telling us if you have any.
Who needs what?
- You own the home and live in it: building and contents.
- You are a tenant: contents, which are yours. The building belongs to the landlord.
- You are a landlord: the building. If you let the home furnished, also what you left in it.
- You have a mortgage: the bank requires building insurance. Contents are only insured if you ask for it.
For flats, fire insurance is required by law. The rest is optional, but it is what gets used the most: water damage, storms, floods and theft.
The three options side by side
| What happens | Building only | Contents only | Building and contents |
|---|---|---|---|
| A pipe bursts and damages the floor and the walls | Yes | No | Yes |
| The same water ruins the sofa and the rug | No | Yes | Yes |
| A storm rips tiles off the roof | Yes | No | Yes |
| Rain comes in through the damaged roof and ruins the television | No | Yes | Yes |
| A fire destroys the fitted kitchen units | Yes | No | Yes |
| The home is burgled and the computer is taken | No | Yes | Yes |
«Yes» means that is the insurance that responds, if the cover is included in your policy and the case meets the policy conditions. For storms, for example, many policies only count wind above 90 km/h, or wind that damaged several buildings in the area. Many covers also have an excess («franquia»), meaning a part of the loss that you always pay yourself.
How much should I insure for?
The building is insured for what it would cost to rebuild it, not for the price you paid or could sell it for. The land does not count. Contents are insured for what it would cost to buy everything again.
Insuring for less is a false saving. If rebuilding the home would cost €200,000 and it is insured for €100,000, on €10,000 of damage the insurance pays only half. It is worth reviewing the amount from time to time, especially after building work.
What the insurance does not pay
Home insurance pays for what is sudden and unexpected: a burst pipe, a storm, a fire. It does not pay for wear and tear or lack of maintenance, such as damp, long-standing leaks or a roof in poor condition.
The question that decides
If you lost everything inside your home tomorrow, could you buy it all again out of your own pocket?
- Yes, without much trouble: if you own the home, building cover may be enough.
- No: add contents.
We help you choose
If you have any questions, email us at segurosgamboa@segurosgamboa.pt with these details, so we can prepare a quote:
- Full name and NIF (tax number)
- Postcode of the home
- Type of home (flat or house)
- Year of construction
- Area in m² and number of bathrooms
- Whether you want to insure the building, the contents or both
- Phone number
We will go through it with you and find the right option for your home.
General information, which does not replace reading the terms of your policy. Cover, limits and exclusions vary from insurer to insurer and may change.