Insurance for Expats in Portugal

Understanding Insurance in Portugal

Portugal designs insurance to protect individuals and businesses from a variety of risks, such as health expenses, property damage, and liability.

The system encompasses both compulsory (and mandatory) and optional policies, generally classified into personal and non-life categories. Personal insurances typically cover life, health, and accident policies, while non-life insurances cover assets like homes, vehicles, and liabilities.

For immigrants, navigating these requirements is crucial, as many types of insurance are legally required to maintain residency or operate a business.

Compulsory insurance in Portugal

In Portugal, residents, property owners, and employees are legally required to carry certain types of insurance:

1. Health Insurance
   • Overview: Portugal's public healthcare system (Serviço Nacional de Saúde, SNS) provides extensive coverage. However, private health insurance offers faster access to private medical facilities, a broader network of specialists, shorter waiting times, and enhanced care options.
   • Who Needs It: Health insurance is optional for EU citizens with access to the SNS. Non-EU residents must secure private health insurance to meet visa and residency requirements, particularly for D7, D8, and D9 visas.
   • Coverage Options:
     • Ambulance and Emergency Services: Essential for immediate care.
     • Hospitalization: Covers inpatient stays, including surgeries and intensive care.
     • Specialist Consultations and Diagnostics: Reduces out-of-pocket costs for non-urgent or specialist visits.
     • Prescription Medication: Some plans cover medication costs, a valuable benefit given the SNS's limited coverage in this area.
   • Documentation Needed: passport, NIF, and occasionally a health history. Policies must meet minimum coverage requirements to satisfy visa regulations.
   • Additional Considerations: Some plans offer partial reimbursement, while others provide access to a network of private hospitals and clinics, expediting care.
2. Automobile Insurance
   • Overview: All vehicles on Portuguese roads are legally required to have car insurance, which covers liability for any harm to third parties (terceiros) in the event of an accident.
   • Types:
     • Liability Insurance (Seguro de Responsabilidade Civil): Covers damages to third parties and is legally required.
     • Comprehensive Insurance (Danos Próprios): Covers the insured’s own vehicle in addition to third-party damages and is optional.
     • Travel Assistance: Adds coverage for vehicle breakdowns or emergency towing.
   • Documentation Needed: Driver’s license, vehicle registration (Documento Único Automóvel), NIF, and proof of address.
   • Key Points: Insurance premiums may vary based on driver history, age, and vehicle type. Higher-value cars or added coverage will attract higher premiums. New drivers or individuals under 25 may also pay more.
3. Property Insurance (Seguro de Incêndio e Multirriscos)
   • Overview: For properties in condominiums, fire insurance covering both private units and common areas is legally required. Multi-risk (multirriscos) insurance is optional but common, adding coverage for broader risks.
   • Who Needs It: Property owners, especially those in multi-unit buildings. Landlords are often required by banks to have a multi-risk policy if they have a mortgage.
   • Coverage Options:
     • Fire and Natural Disasters: Includes fires, floods, and earthquakes.
     • Theft and Vandalism: Coverage for household belongings.
     • Liability: Protects the homeowner if accidents happen on the property that harm others.
   • Documentation Needed: Proof of property ownership and property valuation reports.
   • Additional Tips: Periodically reassess the value of home contents and structure, as insurers only cover up to the policy’s insured amount.
4. Work Accident Insurance (Seguro de Acidentes de Trabalho)
   • Overview: This insurance protects workers by covering costs for injuries or illnesses acquired at work or during work-related activities.
   • Who Needs It: Compulsory for employers of all types, including those with domestic workers. Self-employed individuals must also secure their own work accident insurance.
   • Coverage:
     • Medical and Rehabilitation Expenses: Covers healthcare costs related to the accident.
     • Disability and Death Benefits: Compensation for long-term impairment or in the event of a fatality.
   • Documentation Needed: Proof of employment or self-employment status and personal identification.
   • Important Note: Coverage includes travel to and from work, and employers can face fines for non-compliance.
5. Life Insurance (Seguro de Vida)
   • Overview: Although optional, life insurance is often mandatory when securing a mortgage to protect against default in case of death or disability.
   • Who Needs It: Homeowners with a mortgage, particularly if required by their lending bank.
   • Coverage: Basic coverage includes death benefits, but some policies also cover terminal illness, total and permanent disability, and income loss.
   • Documentation Needed: Identity documents, NIF, proof of mortgage, and in some cases, health evaluations.
   • Additional Tips: Compare policies from different insurers, as some banks might offer bundled discounts but charge higher premiums.

Optional Insurances in Portugal

Beyond mandatory policies, Portugal provides a variety of optional insurance plans that are beneficial to expatriates.

1. Home Content Insurance (Seguro de Recheio)
   • Purpose: Covers household contents against theft, water damage, fire, and other perils.
   • Who Should Consider It: Renters and homeowners, especially those with valuable items.
   • Additional Points: Keep an inventory of valuables, as coverage may be capped or adjusted based on the home’s insured contents.
2. Pet Insurance
   • Purpose: Pet insurance, mandatory for specific breeds classified as dangerous, can include general health coverage for pets such as dogs and cats.
   • Coverage Options: Policies may cover liability for injuries caused by pets and sometimes veterinary care.
   • Documentation Needed: Proof of pet ownership, veterinary records, and breed certification.
   • Additional Tips: Check for coverage for routine and emergency veterinary expenses, which are typically optional add-ons.
3. Civil Liability Insurance (Seguro de Responsabilidade Civil)
   • Purpose: Provides coverage for accidental damages caused to third parties in private settings, such as guests or neighbors.
   • Who Should Consider It: Recommended for pet owners, landlords, or those renting property.
   • Coverage: Protection against damages caused by negligence or accidents within your home or property.
4. Travel Insurance (Seguro de Viagem)

• Purpose: Travel insurance provides protection against unforeseen events during trips, such as medical emergencies, loss or theft of belongings, and trip cancellations.
• Who Should Consider It: Expatriates and frequent travelers, especially those visiting areas without reciprocal health agreements with Portugal or those with complex travel arrangements.
• Coverage Options:
  • Medical Emergencies: Includes hospital visits and repatriation if needed.
  • Trip Cancellation/Interruption: Covers expenses if you need to cancel or cut short a trip.
  • Lost or Stolen Luggage: reimburses the value of personal items lost or stolen.
• Documentation Needed: Typically identification and travel itinerary details.
• Additional Tips: Many premium credit cards or bank accounts may include some form of travel insurance, so it’s worth checking to avoid duplicate coverage.