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Insurance for holiday lets and hotels in Portugal
For holiday homes, apartments and rooms registered as Alojamento Local (AL): the compulsory liability cover and a home policy that includes letting, independently compared and explained in English. We also arrange cover for hostels and hotels.
✅ For properties across Portugal: office in Almancil, Algarve
✅ Independent broker: several insurers compared
✅ Advice in English: also in German and Portuguese
Free and with no obligation · reply usually within 24 hours (working days)
We compare offers from these insurers
What is different when you let to holiday guests
If you let a house, an apartment or individual rooms to holiday guests in Portugal, you need to register it with the municipality as Alojamento Local (AL). The law distinguishes four types: house (moradia), apartment (apartamento), lodging establishment including hostels (estabelecimento de hospedagem) and rooms (quartos).
Registration comes with insurance obligations. You need liability insurance of at least 75,000 euros per claim for damage suffered by guests and third parties as a result of the letting. If the property is in a building with separately owned units, you also need cover for fire damage that occurs in or starts from your unit. In addition, you are jointly and severally liable with your guests for damage they cause to the building, which means you may have to pay for all of it. The legal basis is Article 13-A of Decree-Law 128/2014 as amended by Decree-Law 76/2024.
A private home policy is usually not enough for this. It usually does not include the compulsory liability cover for your guests, and policies often exclude damage arising from a professional, commercial or profit-making activity. How the Portuguese multirisk policy (combined buildings and contents cover) works in general is explained on our page House insurance in Portugal. This page covers what letting adds to it.
Holiday let insurance: the cover you need
For a property registered as AL, these four sections matter most:
Liability cover for letting
The law requires at least 75,000 euros per claim for damage that guests or third parties suffer as a result of the letting. Without a valid policy, the municipality can cancel the registration.
Buildings and furnishings
The building at rebuild value and the furnishings your guests use. Important: the policy should include letting to holiday guests explicitly.
Fire cover for apartments
If your holiday apartment is in a condominium, the law also requires cover for fire damage that starts in or spreads from your unit. More on condominium insurance.
Damage caused by guests
You are jointly and severally liable with your guests for damage they cause to the building, for example in the stairwell or to common areas, possibly for the full amount. Check whether your policy covers this.
Depending on the property, glass breakage, theft, legal expenses and assistance services can be added, and with a pool also pool liability. We build the policy around your property rather than selling a standard package.
Does your home policy cover letting to guests?
We review it and obtain comparison quotes.
Holiday home, apartment, rooms, hostel or hotel
When it comes to letting to holiday guests, we mainly see four situations, and each needs slightly different cover:
Holiday home
Moradia
A detached house let entirely to guests. Buildings, furnishings and the compulsory liability cover belong together, often in one policy. If the house stands empty between bookings, specific conditions apply. More in our guide Holiday home insurance in Portugal.
Holiday apartment
Apartamento in a condominium
On top of liability cover, fire insurance for your unit is compulsory. The owners’ association can set an extra contribution of up to 30 percent of your annual condominium charge for the heavier use of the common areas.
Guest rooms
Quartos
You let individual rooms in your own home. The compulsory liability cover applies here too, and your home policy should include letting. If your home is in a building with separately owned apartments, fire cover for your unit is added.
Hostel and hotel
Hostel, hotel, aparthotel
Hostels are part of Alojamento Local (lodging establishment). Hotels and aparthotels are tourist establishments with their own rules. For both, we put together cover for the whole business: buildings and contents, public liability, business interruption and, for staff, the compulsory workers’ compensation insurance. Contact us via our contact page.
We clarify which situation applies to your property and explain the Portuguese policy terms in English before you sign.
Obligations for hosts at a glance
What the law requires for Alojamento Local (Decree-Law 128/2014 as amended by Decree-Law 76/2024), at a glance:
| Obligation | What applies | What we look at |
|---|---|---|
| Liability insurance | At least 75,000 euros per claim for damage to guests and third parties arising from the letting. | Sum insured, term and renewal without a gap. |
| Damage caused by guests | You are jointly and severally liable with your guests for damage they cause to the building. | Cover for damage to the building and the common areas. |
| Property in a condominium | In addition, cover for fire damage that occurs in or starts from your unit. | Whether your unit has fire cover and you can prove it, through your own policy or the condominium’s policy. |
| Proof of insurance | The municipality can ask for proof, which must be provided within three days. Without insurance or timely proof, the registration can be cancelled. | Policy and proof to hand, explained in English. |
| Safety equipment | For a capacity of up to 10 guests: fire extinguisher, fire blanket, first aid kit and a visible notice of the emergency number 112. | A legal requirement for the property, not part of the policy. Above 10 guests, the general fire safety rules apply. |
This is a general guide. Municipalities can set their own rules, for example on new registrations.
Insurers we compare
We compare offers from several insurers in Portugal, for the liability cover as well as for buildings and furnishings. C1 Broker is not tied to any insurer.
Allianz
International
An international insurance group with a brand familiar to expats.
Hiscox
SPECIALIST INSURER
A specialist insurer with an international profile.
Innovarisk
INSURANCE SOLUTIONS FOR EXPATS
Insurance solutions for international clients and property owners in Portugal.
Zurich
International
A well-established international insurer.
Victoria
ESTABLISHED IN PORTUGAL
A long-standing insurer with a strong presence in the Portuguese market.
Generali
LEADING EUROPEAN INSURER
One of Europe’s largest insurance groups.
This overview is neutral and not a ranking. We identify the most suitable insurer and policy by comparing your property, its location and how it is used.
Compare insurers with independent advice
We obtain suitable quotations and explain the differences in clear English.
Your English-speaking Insurance Broker in Portugal
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Personal advice from the Algarve
C1 Broker · Almancil office, Algarve
“We support hosts across Portugal from choosing the right policy to settling a claim, personally and in your language. You deal with the same people at our office in Almancil.”
- Phone: +351 289 392 452
- Email: [email protected]
- Office: Av. Duarte Pacheco 13 R/C, 8135-104 Almancil (Quinta do Lago), Algarve
- Languages: English, German and Portuguese
Related insurance & guides
House insurance in Portugal
How a multirisk policy works and which insurers are available.
Condominium insurance
What has to be insured in a condominium and what your own policy adds.
Holiday home insurance in Portugal
What applies to second homes and houses that stand empty.
Frequently asked questions about holiday let insurance
Is insurance compulsory for Alojamento Local?
Yes. The law requires liability insurance of at least 75,000 euros per claim for damage that guests and third parties suffer as a result of the letting. If the property is in a building with separately owned units, you also need cover for fire damage that occurs in or starts from your unit.
Is my normal home insurance enough?
Usually not. It usually does not contain the compulsory liability cover for guests, and policies often exclude damage arising from a professional, commercial or profit-making activity. Letting to holiday guests can fall under this depending on the policy, so it should be included explicitly. We check what your policy says.
What does the compulsory liability cover pay for?
It covers financial and non-financial loss (such as compensation for pain and suffering) that guests or third parties suffer as a result of the letting, with at least 75,000 euros per claim. It does not cover damage to your own building and furnishings; that is what your home policy is for.
What applies to a holiday apartment in a condominium?
You also need cover for fire damage that occurs in or starts from your unit. The owners’ association can set an extra contribution of up to 30 percent of your annual condominium charge. Also check the condominium rules: they can exclude holiday letting.
What happens if the insurance is missing or expires?
Without valid compulsory insurance, the registration can be cancelled. The municipality can ask for proof at any time, and it must be provided within three days. Turismo de Portugal is required to publish the expiry date of the compulsory insurance for each property.
Am I liable for damage my guests cause?
You are jointly and severally liable with your guests for damage they cause to the building your property is in, which means you may have to pay for all of it. This mainly affects apartments in a condominium. We make sure your policy includes such damage.
Where is your office and which languages do you speak?
Our office is at Av. Duarte Pacheco 13 R/C, 8135-104 Almancil in the Algarve. We advise hosts, hostel and hotel owners across Portugal in English, German and Portuguese, by phone on +351 289 392 452 or by email at [email protected].
How much does holiday let insurance cost?
The premium depends on the type of property, the number of guests, the sum insured for buildings and furnishings, location, chosen cover and the excess. A reliable flat price is therefore not possible. We prepare a free comparison quote for your property.
Holiday let insurance: request your free quote
Advice in English · independent comparison of several insurers · reply usually within 24 hours (working days)