There are many different types of local accommodation insurance policies in Portugal, and it can be difficult to decide which one is right for you. In this post we will discuss the different types of local accommodation insurance available, and help you decide which is best for your needs.
In Portugal, in recent years, the demand for rural houses and temporary accommodation has seen a very significant increase. Tourists visiting our country are looking for a more authentic experience and Local Accommodation (AL) solutions are among the most sought after in 2022.
If you have a city flat or a village house that you rent out to tourists, you should be aware that in order to legalise your tourism project, you must comply with a series of regulations. The Local Accommodation or Local Lodging sector in Portugal is regulated by Decree-Law No. 128/2014, of 29 August – Regime of exploration authorization of Local Accommodation establishments (Decreto-Lei n.º 128/2014, de 29 de agosto – Regime de autorização de exploração dos estabelecimentos de Alojamento Local). One of the rules that must be complied with is the contracting of compulsory civil liability insurance.
Find out about the insurance solutions that C1 Broker offers for Local Lodging in Portugal. Insurance for local accommodation serves not only to protect your property assets and your financial stability, but also to meet legal requirements to protect your guests and third parties.
Local Lodging activity in Portugal is regulated by legislation which establishes the legal framework for the operation of this type of business, stipulating that the owner must take out and keep valid insurance policies to cover civil liability and fire risks.
Our insurance recommendation will depend on the regime in which the Local Lodging (AL) activity is exercised:
– Flat or AL Housing in the main/permanent dwelling, on an occasional or non-occasional basis.
– In one or more dwellings or in accommodation establishments (including Hostel), on an exclusive basis
Insurance for Local Lodging in Portugal: minimum capital and compulsory cover
The minimum compulsory sum insured is 75 thousand Euros for third party liability cover, which should cover any damage caused to guests or third parties. In addition to this there is also compulsory fire cover, if the local accommodation is located in a building under horizontal property regime.
If something happens to the guests: is the owner’s responsibility?
You may not know it, but if a lamp falls on the head of one of your holiday makers or the chemicals in the pool cause allergies to the skin of your guests, the responsibility of those property damages or injuries is yours. Therefore, it is essential to protect yourself with liability insurance that you can activate in case of losses and damages caused. The compulsory insurance covers up to a limit of 75,000 euros, but if the damage incurred has a higher value (for example, an accident causing injuries with permanent invalidity) the owner will have to respond with his own capital. For this reason, it might be a good idea to assess the possibility of taking out a higher liability capital.
Are there more complete local accommodation insurances?
In addition to the compulsory third-party liability cover, some local accommodation insurance policies offer multi-risk cover, which reinforces the cover in the event of a claim. For example, you can take out cover for water damage, theft, storms, floods, adverse atmospheric phenomena such as heavy rain, wind, etc. This way, if the worst happens, you can count on the insurance company to cover all or at least part of the damages. If your local accommodation has gardens, a swimming pool or solar panels, you can also take out these additional covers to protect your investment in the event of a claim.
How much does local accommodation insurance cost?
There are several options on the insurance market in Portugal and C1 Broker can recommend the best solution according to your property type. The cheapest local accommodation insurance policies cost around 60/70 euros and offer compulsory liability cover of 75,000 euros. The more comprehensive multi-risk insurances are more expensive, but offer a higher level of protection.
There are several insurance companies in Portugal offering local accommodation insurance products: Allianz, Fidelidade, Liberty, Mapfre… and it is advisable to take out these products through the professional insurance broker, who, in addition to being fully familiar with the covers, can offer quality advice. C1 Broker, insurance brokers, in addition to guaranteeing you the best prices, also offers a personalised claims management service.
Contact us now to request your personalised quote for local accommodation insurance in Portugal!