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Choosing condominium insurance should not be an automatic renewal made out of inertia. The right policy protects the building and the owners when there is a fire, a burst pipe or a storm; the wrong one may reveal, at the worst moment, an insufficient sum insured, a high excess or an exclusion that nobody read. In this practical guide we show how to make the best decision in 2026: what the law requires, how to compare proposals, who decides and which questions to ask before signing.
In short
- Only fire insurance is required by law, for the units and the common parts (art. 1429 of the Civil Code).
- The administrator must check that the insurance exists and propose the sum insured to the general meeting (art. 1436(1)(c)).
- Annual updating of the fire insurance is mandatory (art. 5 of Decree-Law 268/94).
- Compare proposals on rebuilding value, cover, excesses, exclusions and claims service, not just the premium.
- The decision belongs to the general meeting, by a majority of the votes representing the invested capital (art. 1432).
The starting point: what is mandatory
The law only requires insurance against fire, for the units and for the common parts (article 1429). Everything else, from water damage to earthquakes, is optional and depends on the contract. That does not make it unnecessary: many of the incidents that affect buildings are not fires.
The administrator’s role is set out in the Civil Code:
«c) Verificar a existência do seguro contra o risco de incêndio, propondo à assembleia o montante do capital seguro;» — Civil Code, article 1436(1)
In plain English: the administrator must check that fire insurance is in place and propose the sum insured to the general meeting.
Five criteria for comparing proposals
| Criterion | Question to ask | Why it matters |
|---|---|---|
| Sum insured | Does it match the cost of rebuilding the building? | An insufficient sum can trigger the proportional rule |
| Cover | Does it include water damage, storms, glass breakage, civil liability? | These are common risks that basic fire insurance does not cover |
| Excesses | What is the amount per claim and per type of cover? | High excesses shift the cost to the condominium |
| Exclusions | What is left out (for example, lack of maintenance, slow leaks)? | This is where refusals come from |
| Claims service | Loss adjustment times, 24-hour assistance, repairer network | Determines how quickly claims are resolved |
Sum insured
It should reflect the cost of rebuilding the building, not the market value of the units. Ask the administrator or a technician for an estimate and check that the proposal clearly states the sum insured for the building and for the common parts.
Cover
A multi-risk policy combines several types of cover. Check whether it includes water damage (with leak detection), natural events, the condominium’s civil liability and, if the building has them, lifts, solar panels, a playground or a pool.
Excesses and exclusions
Two proposals with the same premium can be very different. Read the general and special conditions, especially the exclusions related to lack of maintenance: an old roof that has not been maintained can lead to a claim being refused.
Who decides and how
The administrator prepares the proposals and presents them at the general meeting; the decision follows the general majority rule in article 1432. If the owners do not take out fire insurance within the time and for the amount set, the administrator must do so and charge them the premium. Annual updating is mandatory: if the general meeting does not approve the amount, the administrator updates it according to the index published by the supervisory authority (article 5 of Decree-Law 268/94).
To prepare the vote, see our guide to whether multi-risk condominium insurance is mandatory.
Building insurance and contents insurance
The building insurance covers the structure. Contents (furniture, appliances, personal belongings) are insured by each resident. Check with the owners that building cover is not duplicated, which happens when someone has individual insurance for their unit and the condominium also has a collective policy. Compare the advantages in our article on collective condominium insurance.
Costly mistakes
- Renewing without comparing, year after year;
- Leaving the sum insured out of date;
- Ignoring excesses per type of cover;
- Not telling the insurer about changes to the building (works, new equipment);
- Skipping maintenance and then seeing the claim refused;
- Not keeping the policy conditions available to the owners.
Maintenance is insurance’s best ally: a preventive maintenance plan reduces claims and grounds for refusal.
Checklist before signing
- Sum insured based on rebuilding cost;
- At least three comparable proposals;
- A table with cover, excesses and exclusions side by side;
- Confirmation of cover for the building’s specific equipment;
- The claims procedure explained to the owners;
- Approval in the minutes, with the sum insured and the chosen policy.
If you have doubts about a refusal or your rights as policyholder, the Portuguese insurance supervisor, the Autoridade de Supervisão de Seguros e Fundos de Pensões (ASF), provides consumer information and a complaints channel.
Before renewal: review the policy in good time
Most policies renew automatically. To compare proposals calmly, start the review well ahead of the renewal date and check in the contract the deadline for notifying the insurer. A simple timetable helps:
- Review the sum insured and check that it reflects the rebuilding cost and the annual update;
- Analyse the claims of the past year and how they were handled;
- Ask for proposals with the same cover, to compare like with like;
- Take a reasoned proposal to the general meeting, with the comparison table;
- Notify the current insurer of the decision within the contractual deadline.
Reporting a claim: what to do
An incident must be reported to the insurer within the period set in the contract or, failing that, within eight days of becoming aware of it (article 100 of the legal regime for insurance contracts). Take photographs, keep quotes and invoices and tell the administrator immediately. In the report, state the circumstances, the probable causes and the consequences. A late or incomplete report can complicate settlement.
Remember that building insurance does not, as a rule, cover the contents of the units: each owner should assess whether they need their own insurance for their belongings.
How Condoroo helps
Condoroo manages more than 600 condominiums, with a team of more than 20 professionals. When a claim arises, the manager follows the process with the insurer, and our daily inspections help detect maintenance problems before they become refused claims. Condoroo has professional liability insurance of €500,000 and has held the DECO seal for the third year in a row.
Condominium insurance: frequently asked questions
Which insurance is mandatory for the condominium?
Only insurance against fire, for the units and the common parts (article 1429 of the Civil Code).
Who chooses the condominium's insurer?
The general meeting of owners, based on the proposals presented by the administrator, by a majority of the votes representing the invested capital.
Can I have my own insurance for my unit?
Yes. In that case, the administrator must check that all units and the common parts are insured against fire, to comply with the law.
How do I know if the sum insured is enough?
It should match the cost of rebuilding the building. Ask for a technical estimate and review it whenever there are works or significant changes.
What do I do if the insurer refuses a claim?
Ask for the reasons in writing, complain to the insurer and, if necessary, go to the insurance supervisory authority.
Can I change insurer in the middle of the year?
It depends on the contract conditions, which set the deadlines and how to give notice or terminate. For the condominium’s insurance, changing the collective policy must be approved by the general meeting. So as not to be left without cover, the new policy should start on the day the previous one ends.
This article is for information only and does not replace personalised legal advice. Legislation checked on 26 October 2026.
