Earthquake insurance in Portugal: check before you assume
Seismic cover is a separate, optional item in Portuguese home insurance. A large number of policies — particularly older ones and those arranged through a bank — simply do not have it, and the owner has no idea. It takes us ten minutes to tell you which kind you hold.
Why this page exists
Portugal sits near the boundary between the African and Eurasian plates. The 1755 Lisbon earthquake is the event everyone knows; the 1969 offshore Gonçalves Zarco earthquake, felt across the south of the country, is the one that reminds insurers the exposure is current rather than historical. Buildings in the Algarve and the Lisbon and Setúbal areas sit in the parts of the country where seismic hazard is treated most seriously.
The insurance point is narrower and more useful than the geology. In Portugal, earthquake cover (cobertura de sismo) is an optional extension to a multi-risk home policy, not a standard component of it. It can be added, it is usually a modest proportion of the premium, and a great many policies do not have it — including a large share of those arranged as a formality alongside a mortgage.
We are not going to tell you an earthquake is likely. We are going to tell you that a cover which is optional, inexpensive and frequently absent is worth two minutes of checking, and that the check costs you nothing.
How to tell whether you already have it
- Find the condições particulares. The particular conditions page of your policy, which lists the covers actually bought and their capital limits.
- Look for sismos, fenómenos sísmicos or terramoto. If the line is absent, or shows no capital against it, you do not have the cover.
- Check the excess. Seismic cover typically carries its own excess, often expressed as a percentage of the sum insured rather than a fixed amount.
- Check contents as well as buildings. The two are separately insured and it is possible to have seismic cover on one and not the other.
- In an apartment, check both policies. Yours and the condominium’s. A building can be seismically damaged as a whole while every individual policy responds only to its own fraction.
- Or send it to us. Email the policy and we will read it and answer in English, whether or not you end up buying anything from us.
What seismic cover typically responds to
- Structural damage to the building. Repair or rebuilding following an earthquake, up to the insured capital.
- Contents damage. Where contents are insured and seismic cover extends to them.
- Associated events. Policies frequently group earthquake with other seismic phenomena and, in some wordings, with volcanic activity and tidal effects. The grouping varies by insurer.
- Debris removal and demolition. Where included, the cost of clearing the site before rebuilding.
- Alternative accommodation. Where the policy provides it, somewhere to live while the property is uninhabitable.
What is not covered varies just as much: pre-existing structural defects, unauthorised construction, and damage to items excluded generally are typical carve-outs. As with every cover on this site, the wording of your own policy is what decides a claim — not a summary on a broker’s website, including this one.
The sum insured is where this goes wrong
Seismic cover is one of the few places where the sum insured has to be right rather than approximately right, because it is one of the few perils capable of producing a total loss. A house insured for €200,000 that would cost €450,000 to rebuild is not two-thirds insured against a total loss; it is a proportional settlement waiting to be explained to somebody who has just lost a house.
Insure the rebuild, not the market value
Construction cost plus demolition, professional fees and VAT. The land is not at risk and does not belong in the figure.
Construction costs have moved
Materials and labour in Portugal have risen substantially. A figure set in 2015 is not a figure for today. More on outdated values.
Underinsurance is proportional
Insure at half the correct value and a partial claim can be reduced accordingly, not only a total one.
Condominium buildings too
Building sums insured set years ago and never revised are common, and the shortfall falls on the owners. See earthquake cover for Algarve buildings.
What we do about it
- Read what you have. We check whether seismic cover is present, on buildings and on contents, and at what capital and excess.
- Sanity-check the sum insured. Against the property’s size, construction and location. If it is materially low we will say so.
- Price the addition. Where seismic cover is missing, we obtain the cost of adding it — from your current insurer and from others.
- Compare properly. A written comparison covering seismic capital, excess, and the rest of the policy alongside it. Cover, not just price.
- Tell you if you should stay put. If your existing policy is already the right answer, that is what the report will say.
Check your earthquake cover
Send the property details, or attach your current policy by email afterwards. We will tell you in writing whether seismic cover is there, and what it would cost to add.
By sending this form you agree to us using your details to prepare and discuss your quote, in line with our privacy policy. We never sell your data. Adler & Rochefort is a trading name of Ownizo, Unipessoal Lda., registered with the ASF under no. 425591790/3.
Thank you
Your request has been received. Our team will get back to you within 24 hours.
Frequently asked questions
Is earthquake cover included in Portuguese home insurance?
Not by default. It is an optional extension to a multi-risk policy, and many policies — particularly older ones and those arranged through a bank alongside a mortgage — do not include it. The only way to know is to read the particular conditions of your own policy.
How do I check whether my policy has it?
Look at the condições particulares for a line referring to sismos, fenómenos sísmicos or terramoto with a capital against it. If it is not listed, it is not covered. Send us the policy and we will check it for you in English.
How much does earthquake cover cost to add?
It is usually a modest proportion of the total premium rather than a doubling of it, and the exact figure depends on the insurer, the location, the construction and the sum insured. We obtain the cost from your current insurer and from others so you can see the difference.
Is there a separate excess for earthquake claims?
Almost always, and it is often calculated as a percentage of the sum insured rather than as a fixed amount. This is one of the numbers most worth comparing between insurers, because it varies more than the premium does.
Does it cover contents as well as the building?
Only if contents are insured and the seismic extension applies to them. Buildings and contents are separate covers and it is possible to hold the extension on one and not the other, which is a gap worth closing deliberately rather than by accident.
I live in an apartment. Whose policy covers an earthquake?
Potentially both. The condominium policy deals with the building and common parts; your own policy deals with your fraction and contents. Both need to include seismic cover for the building to be properly protected, and both are worth checking.
Which parts of Portugal are most exposed?
Seismic hazard in Portugal is generally treated as highest in the Algarve and the greater Lisbon and Setúbal areas, reflecting proximity to the Azores–Gibraltar fault zone. Insurers price accordingly, but cover is available across the country.
Will an insurer refuse seismic cover on an old building?
Some are more cautious about older or non-standard construction, and terms can differ. Refusal is not the norm, but the appetite genuinely varies between insurers, which is the practical argument for going to several rather than one.
Related cover
Adler & Rochefort is a commercial brand of Ownizo, Unipessoal Lda., registered with the ASF under no. 425591790/3. General guidance only; conditions, premiums, sub-limits and exclusions vary by insurer, by policy wording and by property. Nothing on this page is a statement of what any particular policy covers, and nothing on it is legal or tax advice.