# Property on Quinta de Gomeria, Cabanas - insurance



## Humpty (Dec 6, 2014)

Hello

Wonder if somebody could help me please. We have recently purchased an apartment in Lote 6, Ruia Ilha da Abobora, Cabanas and have only just found out that the management company does not insurane the block for fire etc and that they have an agreement with individual property owners that they take out their own insurance. Extremely disappointed with this and left feeling extremely vulnerable. Is anybody reading this email had the same experience and what have they done to a) either rectify the situation or b) taken out insurance. I am also struggling trying to get the management company to make contact with myself and provide contact details for Committe members. Any advice would be greatly appreciated as we are at that point where we feel like putting the property back on the market.

Sorry to moan but don't know what to do.......:confused2:


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## MrBife (Jul 26, 2009)

Get that in writing from them and take it to your lawyer. There are some statutory levels of insurance that cannot be avoided by the condominium for the building structure and fabric. Find out who the lawyer is that helps administrate the condominium (there will be one) and get in touch. Their contact info will be on the notes from the last condominium meeting.

You should have your own insurance for third party risks plus personal contents, that's a separate policy organised by you that you should take out right away and will not be that expensive.


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## Humpty (Dec 6, 2014)

Thank you so much for your suggestion. Will make contact today but I have a Feeling that my solicitor will have seen the agreement already but I will ask them to send across to me. Feel like I am banging my head against a brick wall!!


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## canoeman (Mar 3, 2011)

Your Solicitor needs a smack around head, he must be aware of Portuguese Law on your issue and should have advised you prior to purchase, sounds like to much vested interest.

Condominium are by Portuguese Law quite regulated especially when it comes to the Management Committee all information he should have made you aware off.

AGM are always in January you really need to get your information together and question publicly why at least the statutory minimum insurance is not in place. 

Portuguese Bureaucracy this details responsibility of Management Committee

A. Obligatory Insurance

The building must have fire insurance that covers both the independent dwellings/fractions and the communal areas.


1) Who should take out the obligatory insurance?

Each joint-owner individually, thus insuring the structure of his/her home and his/her share in the communal areas (roof, walls, stairs, etc).
The monetary value of the insurance cover must be decided at the joint-owners meeting as well as the deadline for taking the cover out. If the joint-owners fail to take out insurance cover the property manager should do so on their behalf and they will then be obliged to pay back the premium.

2) Must the amount insurance cover be updated annually?

Yes. The joint-owners meeting must decide the amount by which the insurance cover is to be updated. If it fails to do so, the property manager must update the insurance using the quarterly index issued by the Portuguese Insurance Institute.


B. Optional Insurance

There are insurance policies available that cover a wide range of risks in addition to fire; these are called multi-risk policies, specifically multi-risk cover for the home, and multi-risk cover for the condominium. The multi-risk policy for the condominium is a joint policy that covers all the joint-owners and is therefore expected to be cheaper.

If the joint-owners of a property have individual fire insurance or an individual multi-risk policy for the home, and wish to be included in a multi-risk policy for the condominium, he/she should authorise the property manager at a joint-owners meeting to take out the policy, and advise his/her current insurer at least one month prior to the policy renewal date that he/she will not be renewing the policy.


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## Humpty (Dec 6, 2014)

You are very knowledgeable Canoeman and very helpful. Don't know where we would have been but for you. Thank you so much.

My Solicitor has made contact and is sending over details of an insurance company / policy that they recommend we take out. She did send over in Portuguese and I have now asked for an English version. 

Hopefully it should make some sense but will check it out against what you have told me before we take anything out.

Kind regards and again thank you.


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## canoeman (Mar 3, 2011)

They recommend is vested interest yet again.

What you first need to establish is what the Management Committee are doing re Insurance


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