7 Tips for choosing the ideal holiday and overseas home insurance in Portugal

Portugal remains one of the most popular destinations for those looking to buy a second home or holiday property. However, to protect your holiday home or secondary residence is protected from the unexpected, it is essential to choose the right insurance.

If you’re considering this decision, especially as a foreigner, there are a few key factors to keep in mind. In this article, we share 7 practical tips to help you make an informed choice and enjoy peace of mind, safe in the knowledge that you have trusted partner by your side.

1. Ensure that the policy covers all parts of the property

In Portugal, many standard policies exclude external areas and structures such as swimming pools and boundary walls. For holiday homes, these features often part represent a significant proportion of investment.
➤ Choose insurance solutions that automatically cover landscaped gardens, terraces, pools, tennis courts and outbuildings. With Innovarisk, all of these are included in the base coverage – no surprises.

2. Choose All-Risk coverage to prepare for real-life scenarios

Life is full of unexpected events, such as water damage, natural phenomena, theft… even when the house is unoccupied. That’s why it’s important to go beyond just the “legal minimum” coverage.
➤ Innovarisk’s all-risk coverage model protects against events often excluded by other insurers. It’s a genuine safety net, designed to prevent future headaches.

3. Avoid clauses that penalise underinsurance

Many insurers apply what’s known as the “average clause”, which reduces the payout if the property is underinsured. This can pose a significant risk for those unfamiliar with local property values.
➤ With Innovarisk, the average clause does not apply. If something goes wrong, you’ll be compensated based on the full insured value .

4. Protect high-value items

If you own valuable items such as artwork, antiques, high-end furniture or electronics, check whether your insurance covers them individually and up to what amount.
➤ Innovarisk policies protect your belongings, from high-end sound systems to contemporary design pieces, based on their new-for-old value. For non-listed items, limits apply: up to €15,000 per item, pair or set for art or antiques, and up to €5,000 for other valuables.

5. Check coverage for renting to third parties

If you plan to rent out your home while you are not using it, ensure that the policy covers damage caused by tenants and loss of rental income.
➤ With Innovarisk, this coverage is automatic, including damage caused by guests or tenants, as well as loss of rent, with no need for additional endorsements.

6. Be aware of exclusions for long absences

Some insurers reduce or void coverage if the home is unoccupied for more than 30 or 60 days, which is common in the case of holiday homes.
➤ With Innovarisk, however, there’s no time limit on absences, and theft coverage remains fully active even when the home is empty. You only need to notify us if the house becomes permanently uninhabited.

7. Choose a partner that offers a fast response and dedicated support

Beyond coverage, the real difference is made when you need to file a claim. A slow or bureaucratic response can quickly erode trust during a stressful time.
➤ Innovarisk has a strong reputation in the premium insurance market. With over 10 years’ experience, specialised services and a fast, fair claims management process.

Why choose Innovarisk?

✔️ Liability coverage of up to €7.5 million, even worldwide
✔️ Fixed deductible of only €500
✔️ Earthquake deductible of 2.5% (compared to 5% on the market)
✔️ Clear documentation in English with no hidden terms and conditions
✔️ Highly competitive pricing, especially for high-value homes
✔️ Dedicated service for foreign residents and non-residents

Selecting the right insurance for your holiday home in Portugal is not just a formality – it’s a strategic step to safeguard your investment, avoid frustration and sleep peacefully at night. With the right partner by your side, the process becomes much simpler.

If you value transparent, personalised service and protection that is truly tailored to your needs, Innovarisk is the perfect solution.