The most valuable asset of many members is their house, and its contents. It is therefore false economy not to insure them or to insure them for an amount below their true worth.

Natural disasters such as earthquakes are not unknown in Portugal and failure to insure the building itself adequately could have disastrous consequences.

Again, although loss through fire is not a common occurrence, robberies from houses even when occupied, have increased in frequency and adequate cover for content loss is also highly desirable.

The major problem, which arises when a claim for loss is made under an insurance policy, is the value, which has been placed on both the building itself and the contents. All insurance companies take an averaging approach when assessing claims and will only pay out a proposition of the real value of any item if the declared value is less than the Market or New Value.  The temptation in reduce the size of the cover and so the annual premium, must therefore be resisted if problems are to be avoided.

The best household cover provided in Portugal is the HABITAT+ policy issued by Victoria Seguros to AFPOP members. Not only are the rates highly competitive but the policy terms and conditions are considerably more extensive than available elsewhere or to non-members.

COVER FOR BUILDINGS

The cover offered by Victoria Seguros to AFPOP members includes all the standard risks such as damage due to fire, lighting, storm, flood and earthquake but a number of other events as well. Full details are set out in the HABITAT+ booklet produced by Victoria Seguros in both Portuguese and English. Copies are available from the Association's brokers, Medal Lda.

When settling a claim, all insurance companies apply a franquia or excess which requires the policy holder to bear a proportion of the loss. Most companies require the first €50 of the claim to be borne by the policy holder but under the Victoria Seguros/AFPOP scheme the franquia is reduced to €37.

One problem facing every house owner is what value should be placed on the building and here it is wise to obtain professional advice. For a new house it is much easier to arrive at a meaningful figure while the price paid for second hand property will give at least a reasonable idea of the replacement value. As a rule of thumb, the area of the house in square metres multiplied by €750 plus an allowance for a pool and any special features will provide a reasonable indication. In all cases the value of the land should be excluded.

The rate used to calculate the premium payable on the value placed on the building is lower than all other rates and it is false economy to undervalue the building in order to save a small amount of money.

CONTENTS

Again the value placed on the contents should be assessed as realistically as possible. So often an insured party finds that the value placed on furniture and other possessions by a professional valuer is considerably higher than had been imagined. Any claim is then met only in part which leads to dissatisfaction with the service provided by the insurer. It is not unusual to find that the value placed on the contents by the insured party is only say half that of a loss adjuster’s estimate which means that only half the value of a stolen item for instance, is paid out.

While under-declaring the value of property for insurance purposes may mean a short-term gain by way of a lower premium payment, it can lead to a much greater monetary loss in the event of a claim.

PUBLIC LIABILITY

Although claims arising from damage or injury suffered by third parties on an insured's property are fortunately rare, they can be extremely costly when they do arise.

The cover provided by policies issued by Victoria Seguros to AFPOP members against such claims is very substantial and likely to meet all costs incurred in meeting a successful action.

TRAVEL ASSISTANCE

Victoria Seguros HABITAT+ policies provide, at no additional charge, the insured person, the insured person's spouse/partner and children permanently resident with the insured party, with travel assistance starting from 10 kms from the insured address and for a period of up to 60 days per travel abroad.

A wide range of services are provided, particularly when an insured person falls ill or is involved in an accident. Full details of the Liability Limits are set out in the HABITAT+ booklet.

COVER FOR OTHER RISKS

As well as the standard cover provided by a HABITAT+ policy, opportunities exist for cover against a number of defined risks including the following:

·               Frozen or Refrigerated Foods -

A cover of up to €500 is provided at no extra premium for the loss of frozen or refrigerated food in the event of an electrical failure (other than a deliberate act by the Electricity Authority) or the breakdown or sudden stoppage of a freezer.

·               Electrical Risks -

Cover can be arranged for a small additional premium for loss or damage of electrical equipment due to the direct action of the Electricity Authority. Such cover protects against damage to refrigerators, washing machines and similar items. Special arrangements exist for the protection of personal computer equipment

·               Golfing -

Special provisions exist for cover against the loss of golfing equipment, against personal accident while playing golf, and to cover the costs associated with achieving a Hole in One.

·               Accidental Damage

Cover can be obtained for protection against loss or damage to specified items resulting from an accident.

·               All Risks

The loss or damage to Items of jewellery and personal effects can be covered at special premium rates. Cover can be limited to Portugal or Europe, or extended world-wide. The premium rate is considerably higher than for standard cover and all circumstances likely to arise should be taken into account before defining the items to be covered in this way.  This kind of cover is not readily available from all insurers, but is provided to AFPOP members by Medal Lda.

CLAIMS

A good insurance company is happy to settle valid claims promptly and in this respect AFPOP members are fortunate in having access to cover from a company which adopts a very responsible attitude. Inevitably however, some claims are made which need to be investigated before a decision can be taken as to whether cover actually exists under the terms of the policy and also whether the size of the claim is realistic.

Medal have a staff member dedicated to dealing with claims and to providing advice and to assist in  formulating a claim in a manner which will receive prompt attention from the underwriter. The first thing any member with a HABITAT+ policy arranged through Medal should do when a situation arises which could result in a claim being made is to contact that company.