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A leak from the roof, a burst pipe in the common riser, a storm that tears off part of the roof: these are the claims owners worry about most. Many believe that multi-risk condo insurance is mandatory. It is not. In October 2026, the law still only requires insurance against the risk of fire, for the units and for the common parts. In this guide we explain what the law requires, what a multi-risk policy adds, how it fits with each unit’s insurance, what the condominium management regulation being prepared may change and what the general meeting should check now.
In short
- The only mandatory insurance in a building under horizontal property is fire insurance, for the units and the common parts.
- Fire insurance must be updated every year.
- Multi-risk insurance is optional and can cover water damage, storms, broken glass, civil liability and other risks.
- If the sum insured is lower than the building’s value, the insurer only pays part of the loss.
- The condominium management regulation being prepared provides for civil liability insurance for companies, not mandatory multi-risk insurance for buildings.
What the law requires today: fire insurance
The rule is in the Civil Code and did not change in 2026:
«1 – É obrigatório o seguro contra o risco de incêndio do edifício, quer quanto às fracções autónomas, quer relativamente às partes comuns.» — Civil Code, article 1429(1)
In plain English: insurance against the risk of fire is mandatory for the building, both for the individual units and for the common parts.
The Insurance and Pension Funds Supervisory Authority (ASF) explains the same on its consumer portal:
«Em relação à habitação, o único seguro que é obrigatório é o seguro de incêndio e apenas para os edifícios em regime de propriedade horizontal, ou seja, edifícios constituídos por apartamentos, conhecidos habitualmente por condomínios.» — ASF, Consumer Portal, Home insurance
In plain English: for housing, the only insurance that is mandatory is fire insurance, and only for buildings under horizontal property, that is, buildings made up of flats, usually known as condominiums.
The insurance must be taken out by the owners. If they do not do so within the deadline and for the amount set by the general meeting, the administrator must take it out and is entitled to charge them the premium (art. 1429(2)). The administrator must also check that the insurance exists and propose the sum insured to the general meeting (art. 1436(1)(c)). And the insurance must keep pace with the building’s value: Decree-Law 268/94 requires fire insurance to be updated every year (art. 5).
| Insurance | Mandatory? | What it usually covers | Who takes it out |
|---|---|---|---|
| Fire | Yes | Fire, lightning and explosion, in units and common parts | Each owner or the condominium |
| Condominium multi-risk | No | Fire and other risks in the common parts, depending on the policy | Condominium, by decision of the meeting |
| Unit multi-risk | No | The unit and, if contracted, its contents | Each owner |
| Management company liability | Not for now | Damage caused by the management | Management company |
Fire, multi-risk and home insurance: the differences
Fire insurance essentially covers damage caused by fire, lightning and explosion. A multi-risk policy adds other cover, which varies from policy to policy: water damage, storms, floods, broken glass, earthquakes, vandalism, the condominium’s civil liability to third parties and assistance. The ASF points out that insurance must cover each unit and the common parts, in proportion to the permillage.
There are two common models. In the first, each owner has insurance for their unit that includes their share of the common parts. In the second, the condominium takes out a collective policy for the whole building. The second makes it easier to handle claims in the common parts, because there is a single insurer and a single sum insured. DECO PROteste explains how to compare cover, exclusions and excesses. See also our guide to choosing condominium insurance.
Sum insured: the most expensive mistake
The sum insured should correspond to the cost of rebuilding the building, not the market value of the homes. If it falls short, the rule is harsh:
«Salvo convenção em contrário, se o capital seguro for inferior ao valor do objecto seguro, o segurador só responde pelo dano na respectiva proporção.» — Legal regime of the insurance contract, article 134
In plain English: unless otherwise agreed, if the sum insured is lower than the value of the insured property, the insurer only pays the loss in the same proportion.
That is why the annual update is not a formality. Ask the insurer or broker to confirm the sum insured, especially after works that increase the building’s value, such as refurbishing the facade or installing solar panels.
Water and storms: where multi-risk makes a difference
Bursts in the common water riser, leaks through the roof and storm damage are not covered by fire-only insurance. In those cases, without multi-risk, the repair comes out of the condominium’s budget or the common reserve fund. When there is a claim, it must be reported to the insurer within the period set in the contract or, failing that, within eight days of becoming aware of it (art. 100 of the legal regime of the insurance contract). Photograph the damage, keep invoices and technical reports and do not make permanent repairs before the loss adjuster’s inspection, except urgent ones.
What changes (and what does not) with the regulation being prepared
The Government is preparing a regime for professional condominium management. In August 2026, the Ministry of Infrastructure and Housing told CNN Portugal that the proposal was «in the legislative process» and that it would only be submitted to Parliament after approval by the Council of Ministers. According to CNN Portugal and Jornal Económico, the bill provides for licensing of companies, a written contract, adequate training and mandatory civil liability insurance for those who manage condominiums.
That civil liability insurance protects the condominium against management errors, such as insurance that was not renewed or an improper payment. It does not replace the building’s insurance. As of October 2026, no rule making multi-risk insurance mandatory for buildings has been published. See where things stand in condominium regulations in 2026.
What the general meeting should check now
- Whether every unit has valid fire insurance that includes its share of the common parts.
- Whether the sum insured was updated this year and matches the rebuilding cost.
- Whether a collective multi-risk policy makes sense, comparing at least three proposals.
- Which cover matters for the building: water damage, storms, broken glass, civil liability, earthquakes.
- What the excess is and who pays it for each type of claim.
- Whether the management company has civil liability insurance and for what amount.
- Whether the common reserve fund is enough to cover excesses and uninsured damage.
How Condoroo helps
Condoroo manages more than 600 condominiums, with a team of more than 20 professionals. Every year we check the fire insurance and the sum insured, request multi-risk proposals when the general meeting decides to, compare cover and excesses and follow up insurance claims. The company has €500,000 civil liability insurance. The decision on the type of insurance always belongs to the general meeting. Read the reasons to take out condominium insurance.
Multi-risk condominium insurance: frequently asked questions
Is multi-risk condominium insurance mandatory?
No. In October 2026, the only mandatory insurance in a building under horizontal property is fire insurance, for the units and the common parts (art. 1429 of the Civil Code).
Who has to take out fire insurance?
The owners. If they do not do so within the deadline and for the amount set by the general meeting, the administrator must take it out and charge them the premium (art. 1429(2)).
Does fire insurance have to be updated?
Yes. The annual update is mandatory (art. 5 of Decree-Law 268/94).
What happens if the sum insured is too low?
Unless otherwise agreed, the insurer only pays the loss in the proportion between the sum insured and the value of the property (art. 134 of the legal regime of the insurance contract).
Will the new regulation make multi-risk insurance mandatory?
The known bill provides for civil liability insurance for management companies. As of October 2026, no rule making multi-risk insurance mandatory for buildings has been published.
How quickly should I report a claim?
Within the period set in the contract or, failing that, within eight days of becoming aware of the claim (art. 100 of the legal regime of the insurance contract).
This article is for information only. Legislation and websites consulted on 26 October 2026.
