Building a home in Portugal is not insured by a normal household policy. Until the works are complete and accepted, the project needs construction-phase cover that reflects who owns the site, who controls the works and who could be liable if something goes wrong.
Private clients often hear several terms at once: works insurance, promoter liability, contractor insurance and seguro decenal. They are connected, but they do not do the same job.
What promoter insurance is for
- Liability linked to the person or entity promoting the build.
- Damage or injury affecting neighbours, visitors or third parties during works.
- Gaps where the contractor's policy does not protect the owner adequately.
- Projects where several contractors or trades are active on the same site.
Where seguro decenal fits
Seguro decenal is designed around serious structural defects discovered after completion. It is not a replacement for construction works insurance, site liability or the contractor's own obligations during the build.
What owners should arrange before works begin
- Written confirmation of the contractor's insurance and limits.
- A works policy that reflects the contract value and project timeline.
- Public liability for the site and neighbouring property exposure.
- A plan for the completed home policy before handover.
The strongest time to fix insurance is before the first machinery arrives, not after a neighbour, bank or buyer asks for documents.
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