Multi-risk condo insurance: the law still only requires fire cover — what changes (and what does not) in 2026
The condominium management sector has put mandatory multi-risk insurance back on the public agenda, just as the Government prepares rules to professionalise external managers. According to figures cited in the press, the law still requires only insurance against fire risk, while banking practice and most home policies already point elsewhere — and the draft under preparation, still in the legislative pipeline, focuses on written contracts, professional liability and IMPIC supervision, without changing, as reported, the building-insurance regime.
Key ideas in this article
1. The hook: professionalising managers and the call for mandatory multi-risk cover
In September 2026, the debate on condominiums in Portugal crossed two tracks that should not be confused. On one side, a statute is being prepared for anyone who manages condominiums professionally and for a fee: written contract, professional liability insurance, training and oversight. On the other, the condominium management sector insists that building protection should go beyond the 1966 legal minimum — fire insurance — and require a basic package of covers aligned with today’s claims profile, typically driven by water damage and not only by fire.
Expresso (https://expresso.pt/economia/economia_imobiliario/2026-09-22-gestores-de-condominios-querem-seguro-multirriscos-obrigatorio-7a45cbb4) describes this request as a “crucial” point that the government has not yet built into the draft text. For unit owners and general meetings, the practical message is different: until the law changes, deciding covers, sums insured and who takes out what remains homework — not an administrative afterthought.
For the wider picture of the announced regulation (licences, training, Digital Building Logbook), Condoroo has gathered the essentials in Condominium regulations in Portugal 2026 (https://condoroo.ai/en/condominium-regulations-portugal-2026/).
2. What the law requires today: fire insurance only (art. 1429)
Article 1429 of the Civil Code is clear:
- Insurance against fire risk for the building is mandatory, both for the autonomous units and for the common parts.
- 2. The insurance must be taken out by the unit owners; the administrator must nevertheless arrange it when owners have not done so within the deadline and for the value set by the general meeting, with the right to recover the corresponding premium.
The Insurance and Pension Funds Supervisory Authority (ASF) confirms the same framework: for housing, the only legally mandatory insurance is fire cover — and only in buildings under the horizontal property regime (ordinary condominiums). Each unit and its share of the common parts (roof, stairwells, lifts, garage, and so on) must be covered, usually according to the permillage.
In assembly language: the legal minimum is not “any building policy”. It is specific fire cover (and, under the standard policy wording, damage directly tied to that risk — smoke, firefighting measures or lightning strike, depending on the contract). Anything beyond that — floods, storms, electrical risks, theft, broader third-party liability — generally belongs to the multi-risk world, which remains optional under the law.
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3. Why “fire only” looks outdated
The historical argument, revived in the press in 2026, is intuitive: when the Civil Code was drafted, residential construction used more wood in floors, window frames and interior elements; fire risk weighed differently. Today, materials and techniques have changed. Without inventing national claims statistics, the sector points to a pattern many condominiums recognise day to day: floods and burst pipes create more headaches — and bigger bills — than fire.
DECO Proteste illustrates the practical problem well: a storm damages the roof, water runs down two floors and the loss spreads. If the roof is a common part, the duty to repair and deal with related damage starts with the condominium. With pure fire insurance, that scenario often falls outside mandatory cover. With multi-risk (collective or individual), the conversation shifts from “who pays out of pocket?” to “which excess, which sum insured and which exclusions apply?”.
Hence the sector’s call for a minimum basket of covers designed around real claims experience — not necessarily a premium policy for everyone, but a legal floor closer to how buildings actually live.
4. Multi-risk vs fire; home policy vs condo policy
4.1. What multi-risk adds
According to the ASF, home multi-risk insurance bundles optional covers that may include flood, storm and electrical damage; repair of movable property (contents); theft or burglary; household third-party liability; and other complementary options. The premium depends on the covers chosen — and in practice the gap versus a fire-only policy is often presented as “only a little more” cost for a clear jump in protection.
4.2. Unit policy vs condominium policy
Two logics coexist (and sometimes collide) in the same building:
- Home multi-risk (individual): each owner insures their unit and, typically, their share of the common parts. Contents can be included. When a claim hits several units and common areas, several insurers must coordinate — slower, more telephone tag.
- – Condo multi-risk (collective): the general meeting decides a policy for the whole building or, frequently, only for the common parts. A single insurer speeds settlement; the collective premium can cost less than the sum of individual policies; complementary covers make sense for the building. In return, home contents usually stay outside — they need a separate policy.
Public guides help map these differences before a vote. The critical point is not “what the product is called”, but what is covered, at what sum insured, with what excess and who notifies the claim.
4.3. Speed when a claim hits
When water comes through the roof or a common pipe bursts, time matters. With dozens of individual policies, the administrator must contact many policyholders and many companies. With a well-documented collective multi-risk policy, the first contact is one — and documentary coordination (photos, quotes, minutes) becomes more predictable. That does not remove exclusions or excesses; it only cuts administrative friction when the building most needs a response.
5. Banks already require multi-risk: practice ahead of the law
Here is the Portuguese paradox, well documented in the figures cited in the press:
- In 2024, the ASF recorded 3.64 million “multiple risks” home policies.
- – In the 2021 Census, there were about 5.97 million classic family dwellings.
The published inference is simple: more than half of dwellings already have multi-risk cover. The dominant explanation is not condominium law — it is home loans. Banks ask for multi-risk as a security condition for financing the purchase. Everyday practice has therefore already moved past the article 1429 minimum, especially among owners with an active mortgage.
For the sector, making multi-risk mandatory would “bring the law closer to everyday life”. For the general meeting, the warning is different: anyone who already has a bank-linked policy and anyone living in a building with collective cover for the common parts needs to avoid useless duplication without creating gaps. Compare covers and, where it makes sense, negotiate with the lender the possibility of moving the insurance off the bank’s panel without worsening the spread.
6. What the professional-managers statute includes — and what it leaves out
According to September 2026 press reporting, the text presented to the sector points to:
- A written service contract;
- – Professional liability insurance for the activity;
- – Adequate training;
- – Possible licence withdrawal for non-compliance;
- – Supervision by IMPIC (Institute of Public Markets, Real Estate and Construction).
Three essential limits, also reported in the press:
1. The statute targets firms and professionals in the sector — not self-managed condominiums, estimated at about 50% of the stock.
2. The process is still in the legislative pipeline and, at the time of reporting, had not yet reached the Assembly of the Republic.
3. Mandatory building multi-risk insurance does not appear, on what has been disclosed, as a piece already built into that statute.
In practical terms: even if professionalisation advances, building insurance remains, for now, under the Civil Code and general-meeting decisions. Confusing the manager’s professional liability policy with the building’s multi-risk condo insurance is an expensive mistake — they are different planes.
7. What owners and assemblies should check now
Regardless of the legislative calendar, some steps are gold at the next ordinary general meeting:
- Policy map. Who has fire-only cover? Who has individual multi-risk? Is there a collective policy (building or common parts)?
- 2. Sums insured. The building sum should reflect reconstruction cost, not market price. The ASF warns about the average clause (proportional rule): under-insurance = indemnity reduced in the same proportion.
- 3. Annual update. For mandatory fire insurance, updating is compulsory. If the meeting does not set the value, the Buildings Index (IE) published by the ASF applies.
- 4. Typical gaps. Water damage vs chronic damp; storms with wind/rain thresholds; exclusions for lack of maintenance; third-party liability limits.
- 5. Double (or triple) cover. Bank policy + unit policy + collective common-parts policy can overlap. Documenting and choosing which to trigger avoids insurer disputes.
- 6. Who notifies the claim. Under a collective policy, usually the administrator; for a unit policy, the policyholder — but coordination should be written (rules, minutes, contacts).
- 7. Documentation. Policies, special conditions, premium receipts and claims history should sit in the condominium archive.
A well-prepared meeting does not “approve the insurance” in 30 seconds: it asks for comparable quotes, reads exclusions and decides on the building’s real risk (age, roof, plumbing, location, common equipment).
8. How Condoroo helps (without replacing the meeting’s decision)
Condoroo delivers professional management with a focus on documentation, follow-up and clarity for owners. On insurance, that means concrete tasks — not “selling” a policy:
- Periodic review of building policies and how they line up with legal duties (fire) and with the covers actually bought;
- – Alerts on sums insured and updates (including the ASF Buildings Index where applicable);
- – Document organisation so minutes, quotes and special conditions are available before votes;
- – Claims coordination affecting common parts: gather evidence, contact the insurer and keep owners informed in writing;
- – Cost transparency: the insurance premium appears in the accounts and budget with a clear trail.
The decision to take out or widen cover remains with the general meeting. Professional management’s role is to make sure that decision rests on complete information and no surprises on claim day.
9. Frequently asked questions
Is multi-risk condo insurance already mandatory in Portugal?
No. The Civil Code (art. 1429) requires only insurance against fire risk for units and common parts. Multi-risk remains optional under the law — though it is very common because banks demand it for home loans.
Who must take out the fire insurance?
The unit owners. If they do not do so within the deadline and for the value set by the meeting, the administrator must arrange it and may recover the premium. The ASF describes the same mechanism.
What is the difference between home multi-risk and condo multi-risk?
The first is typically individual (unit + share of common parts, and may include contents). The second is collective (whole building or common parts only) and usually speeds claims because there is a single insurer. Home contents almost always need a separate policy.
Can banks require multi-risk even without a legal duty?
Yes, as a contractual condition of the loan. That is why practice is, in many cases, ahead of the condominium legal minimum.
Does the professional-managers statute make multi-risk mandatory?
On what was reported in the press in September 2026, no. The draft focuses on written contracts, professional liability, training and IMPIC supervision, and had not yet entered Parliament.
Is self-management left out of the new manager rules?
Yes, according to the estimate cited: about half of condominiums manage themselves and would fall outside the regulated professional activity. Civil Code duties on fire insurance remain under any management model.
What is the ASF Buildings Index (IE)?
It is the index used to update building insurance sums when the meeting does not set another update criterion. It helps keep the sum insured aligned with reconstruction cost.
Can I keep a collective policy and the bank’s policy?
Yes, but covers and costs may overlap. Compare conditions, tell the insurer about other policies and check with the bank whether concentrating protection makes sense without worsening the loan terms.
10. Conclusion
In 2026, Portugal’s debate on multi-risk condo insurance shows a classic gap between law, practice and real risk. The law still requires fire cover; banks and more than half of dwellings (on the ASF/Census figures cited in the press) already live in the multi-risk world; the condominium management sector asks for a minimum basket aligned with floods and plumbing; and the professional-managers statute advances on another axis — fitness, contract, liability cover and IMPIC — without, as far as is known, closing the chapter on building insurance.
For anyone who lives in or manages a building, the useful agenda does not wait for the Official Gazette: map policies, update sums insured, close gaps and document who notifies what. When the general meeting decides on clear information, the condominium is less exposed — with or without an immediate change in the law.
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