Tenant default insurance in Portugal

The Portuguese property rental market is rather “tight” due to a lack of property available for rent. Many investors, are therefore particularly interested in these opportunities. However, you must be careful. Even though a new Portuguese law theoretically allows owners to evict a tenant after only 2 unpaid monthly rent payments, the reality is often quite complex. Tenant default insurance offers all the guarantees expected by an owner to rent out property with peace of mind and ensure their investment!

• Legal telephone assistance: it allows property owners access to specialist attorneys to get the answers to all their technical legal questions.

• Defence and appeals: it particularly protects you in the event of non-payment, material damages to your property or when the tenant does not respect the deposit and abandons the property in advance, etc.

• Access to a specialist attorney to assist youwith legal proceedings and thus better defend your rights.

• With a guarantee against default rental payments, the insurance company guarantees the rent not paid by the tenant. The assistance period may vary from 6 to 18 months, depending on your needs.

• Locksmith fees in the event of an eviction

• Structural repairs following vandalism or theft by the tenant.

Several documents will be requested in order to take out a tenant default insurance policy particularly in order to confirm the tenant’s financial situation. These documents may vary depending on the tenant’s status - employee, self-employed worker or pensioner. The documents to be provided are:

For an employee:

• The most recent 3 pay sheets and employment contract

For a self-employed worker:

• The most recent income tax statement filed

• The most recent two quarterly VAT statements filed or proof of payment for the most recent two Social Security self-employment contributions or "quota de autônomos” paid.

For a pensioner:

• The most recent proof of pension paid by the Social Security system.

In any case, their identity documents must be provided and an insurance company subscription questionnaire must be completed.

Inov Expat is fully knowledgeable of tenant default insurance and can, therefore, advise you on the most appropriate choice of insurance for your rental investment in Portugal. We are an insurance brokerage firm that has been working with the best insurance companies in the market since our foundation in 2004 to be able to offer you “customised” solutions at the best price. We can answer all your questions as well as handle any claims necessary throughout the term of your policy and act as privileged liaisons to defend your rights against insurance companies.

Complete the form and you’ll receive a comparison of different tenant default policies offered by our partner insurance companies within 2 hours (during office hours):