Reviewed by Hugo Gonçalves, Founder & Risk Management Specialist at Adler & Rochefort · Degree in Business Management (University of Hertfordshire) · Ongoing training at the Chartered Insurance Institute (CII), London.
A major build or renovation is the period when a property is most exposed and least well insured. The works are the contractor’s responsibility on paper, the existing house may have lost its home cover without anyone noticing, and the owner carries a liability to neighbours and passers-by that no one has quoted for.
We arrange owner-controlled cover for new builds and major renovations in Portugal and Spain, placed through insurers, specialist markets and co-brokerage partners who write construction risks — from the first day on site to the day the home policy takes over.
Owners building or transforming a home where the works themselves represent a substantial sum.
During the works, the typical losses are fire, storm and flood damage to the structure in progress, theft of materials and installed equipment, collapse, and damage to neighbouring property from excavation or vibration. After completion, the questions shift to hidden defects, and here the legal frameworks of the two countries differ markedly.
| Portugal | Spain | |
|---|---|---|
| Liability for defects | The builder is liable for defects in immovable works for five years after delivery (Código Civil, art. 1225) | Under the Ley de Ordenación de la Edificación (Ley 38/1999): ten years for structural defects, three years for habitability defects, one year for finishing defects |
| Decennial insurance | No general compulsory decennial insurance for private homes | Decennial insurance (seguro decenal) is compulsory for promoters of new housing; a self-promoter building a single-family home for own use is exempt, but the question returns if the home is sold within ten years |
| The owner’s role | The owner is dono da obra and can be liable to third parties for damage caused by the works | The owner acting as promotor carries statutory duties and liability to third parties |
| Heritage buildings | Works on classified buildings require heritage approval; rebuild costs are higher | Protected buildings are subject to municipal and regional heritage rules; the same cost effect applies |
These points are summarised in general terms. The position for a specific project depends on the contracts, the licences and the facts, and should be confirmed with your lawyer or architect.
The aim is simple: every day of the project is insured, and it is clear who holds each cover.
Cover for the works, materials on site and temporary works against physical loss or damage, for the full contract value. Arranged by the owner, or checked carefully if the contractor arranges it.
Third-party liability of the owner as dono da obra or promotor, for damage to neighbours, passers-by and adjoining property.
The house being renovated and its contents, which many home policies suspend or restrict once major works begin.
Theft of materials, fixtures and installed equipment on site, often sub-limited or excluded unless the site is secured.
Additional costs or alternative accommodation when an insured loss delays completion, as an optional section.
Where required or wanted, decennial insurance for structural defects — compulsory in many Spanish cases, optional in Portugal.
The high-value home policy starts the day the works policy ends, with sums insured reflecting the finished house. No gap.
Architects and engineers carry their own professional liability insurance; we check that it exists and what it covers.
Most of this already exists in the project file. We can work directly with your architect or project manager.
Before any proposal you receive a written note: what the exposure actually is, where your current policies stop, and what a well-placed policy should contain. It is yours to keep whether or not you proceed.
Construction risks are placed with insurers and specialist markets that write works and decennial cover, directly or through co-brokerage partners. The insurer is named in writing with the proposal, and the handover to the home policy is planned from the start.
The same person handles the file from the first conversation through placement, every renewal and any claim. You never re-explain your circumstances to somebody new.
If something happens, we notify the insurer, assemble the documentation, and stay with the claim until it is settled, in writing, with a record of every step.
Adler & Rochefort is an ASF-registered insurance intermediary, not tied to any insurer, with its head office in Lisbon and clients across Portugal and Spain. No client names are published, and information about what you own or how you live goes only to the markets approached on your instructions.
Tell us briefly what you would like to protect, and where. We reply in writing, in English, within 24 hours, with a first assessment and the information an underwriter will need. No call is required at any stage.
By sending this form you agree to us using your details to prepare and discuss the cover, in line with our privacy policy. We never sell your data, and we do not publish client names or details of what we insure.
We will reply in writing within 24 hours.