Portugal is experiencing days marked by extreme weather phenomena. Strong winds, falling trees, persistent rain, sea disturbances and floods left a trail of destruction in several regions, placing families and businesses in an unexpectedly fragile situation. In many cases, the biggest shock does not come at the time of the damage, but days later, when the insurance company responds.
Although a significant proportion of homes and businesses are protected by insurance, this does not automatically mean that all damage caused by natural catastrophes is covered. On the contrary.
According to data released by the newspaper Sol, more than 90% of losses associated with extreme natural phenomena in Portugal end up not being compensated by insurance companies.
Insurance exists, but coverage does not always match the risk
Most Portuguese people associate the idea of protection with multi-risk insurance, believing that this policy covers practically any scenario.
However, according to the same source, damage caused by severe storms, floods or earth movements generally requires specific coverage, which is not always included in the base contracts.
In many cases, these additional coverages exist, but have not been purchased. In others, they are provided for with reduced limits, high deductibles or exclusions that only become evident after the accident.
There are also situations in which the sums insured have not been updated, allowing insurers to significantly reduce the value of the compensation.
Mandatory insurance that creates a false sense of security
In Portugal, the law only requires the existence of insurance against the risk of fire in buildings under horizontal ownership. This insurance, normally contracted by the condominium administration, exclusively covers damage caused by fire.
As the same source explains, this legal framework creates a misleading perception of protection. Those who live in apartments may assume that they are protected against extreme phenomena, when, in practice, damage such as torn off roofs, infiltrations caused by heavy rain, windows destroyed by wind or floods are not covered.
Without multi-risk individual home insurance, losses almost always fall on the owners.
Multi-risk housing: the most complete protection, but not automatic
Multi-risk home insurance is currently the most comprehensive policy available on the market. It can include coverage for storms and high winds, floods, landslides, water damage, electrical surges, debris removal and even temporary housing if the home becomes uninhabitable.
Still, as Sol highlights, these guarantees vary from contract to contract. Not all are included by default and many depend on express membership, and it is essential to confirm conditions, exclusions and deductibles before a claim occurs.
A debate that always returns after the catastrophe
Faced with the growing size of losses associated with extreme phenomena, the insurance sector has been advocating the creation of a public fund to support natural catastrophes.
The idea, according to the , is to create a complementary mechanism that allows responding to situations in which private coverage fails or is non-existent.
Until then, the rule remains simple and strict: only those who have contracted, in a clear and up-to-date manner, the right coverage, receive compensation. For many Portuguese, this discovery comes too late, when the storm has passed and the damage is visible.
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