Nearly Half of Storm-Hit Homes Had No Insurance Coverage
Nearly half of all homes in the municipalities declared under calamity after Portugal's recent storms had no insurance coverage for tempest or flood damage, the head of the country's insurance regulator revealed on Wednesday, exposing a protection gap that will leave thousands of families to...
Nearly half of all homes in the municipalities declared under calamity after Portugal's recent storms had no insurance coverage for tempest or flood damage, the head of the country's insurance regulator revealed on Wednesday, exposing a protection gap that will leave thousands of families to shoulder rebuilding costs alone.
Gabriel Bernardino, president of the Insurance and Pension Funds Supervisory Authority (ASF), told a parliamentary hearing that roughly 49% of homes in the affected municipalities lacked policies covering storm or flood damage. The figure underscores a longstanding vulnerability in Portugal's housing market, where comprehensive insurance uptake has lagged behind most of Western Europe.
The scale of the damage is substantial. According to ASF data, approximately 114,000 claims had been filed as of Tuesday, with insurers paying out around 42 million euros so far. International reinsurers estimate total insured losses could reach 600 million euros, split between residential properties (40%), commercial premises (24%), and industrial sites (36%).
The insurance sector has committed to the government that 80% of claims will be resolved within a defined timeline, though Bernardino acknowledged that the sheer volume of cases presents logistical challenges. For the 49% without coverage, the path to recovery is far less clear.
Portugal's relatively low insurance penetration is not new, but the storms have brought the issue into sharp focus. Jose Coutinho, director of underwriting at Zurich Portugal, noted that 50% of the entire national housing stock has no insurance at all -- not just in storm-affected areas. Standard multi-risk policies typically include fire coverage as a base, with storm and flood protection available as supplementary options that many homeowners either decline or are unaware they need to add.
The gap hits renters and recent arrivals particularly hard. Many foreign residents who have purchased property in Portugal may assume their mortgage-linked insurance covers natural disasters comprehensively, when in practice, the scope of coverage varies significantly between providers and policy types. Those renting may have no property insurance at all, relying entirely on landlords whose own coverage may be inadequate.
The ASF president called the situation a wake-up call, noting that "Portugal faces a statistical reality" that demands a national conversation about mandatory minimum coverage levels. Whether the government will pursue regulatory changes remains to be seen, but the political pressure to act is mounting as thousands of uninsured families face an uncertain recovery.
