Mandatory home insurance with support for vulnerable people
The creation of mandatory insurance is presented as a "structuring and strategic" measure. The goal is to ensure that all homes and business buildings are protected against extreme events, reducing the financial and social impact in the event of a catastrophe.
Even so, the Executive assures that there will be a support mechanism for those who cannot afford the cost of the premium. The idea is to guarantee universal access, through a model that combines individual responsibility with collective solidarity, says the government.

"We cannot convey to society the idea that the State can pay for everything for everyone, under any circumstances," stressed Luís Montenegro, advocating for a more balanced system, with the involvement of the insurance sector.

Disaster Fund financed based on the new model
The new regime also provides for the creation of a Natural and Seismic Disaster Fund, which will function as a response instrument for large-scale situations. Financing should follow the model proposed by the Insurance and Pension Funds Supervisory Authority (ASF), with one of the main sources being contributions associated with mandatory insurance.

The PTRR's overall plan, which frames this measure, represents an investment of €22.6 billion over nine years, combining national public funds, private investment, and European funding, and has already drawn criticism from the opposition.

Insurance sector applauds long-advocated measure
The response from the insurance sector was immediate and positive. The Portuguese Association of Insurers considers that the measure "aligns Portugal with international best practices" and allows for a more predictable and effective response to extreme events.
Insurance brokers and agents also highlight the potential positive impact of the measure, not only from the point of view of protecting families and businesses, but also on the stability of the economic system.

What changes for homeowners?
Current data helps to understand the size of the challenge. It is estimated that about half of the country's homes have no insurance of any kind. And, among those that do, seismic risk coverage remains residual, below 20%.
Currently, fire insurance is only mandatory for buildings in horizontal property ownership, and is usually contracted by the condominium. For individual units, there is no legal obligation, although, in practice, banks require insurance associated with mortgage loans.
With the new regime, insurance will become more comprehensively mandatory, including risks such as earthquakes and other natural disasters, which may represent a significant change in the burdens on owners, but also in the level of asset protection.
It remains to be seen how the proposal will be implemented and how this obligation will be applied in practice and what impact it will have on owners' wallets.
Real Estate News, Notícias Informativas