Insurance for
Alojamento Local.
Running an AL in Portugal without proper cover is one of the few compliance shortcuts that ends both your registration and your holiday. Civil-liability cover for guest injury and third-party damage is mandatory under Decreto-Lei 128/2014, and a standard homeowner's policy specifically excludes short-let use. These are the brokers we send our owners to.
ASF-regulated Portuguese insurers, no offshore workarounds. Every provider issues a certificado válido that Turismo de Portugal accepts.
Compliance and worst-case protection
AL insurance is two things at once. Legally, it's the certificate Turismo de Portugal expects you to hold on file — the piece of paper that keeps your AL registration valid. Practically, it's what stands between one bad incident and losing the property. Slippery pool tiles, a smoke-detector that failed silently, a guest falling down an unmarked step: any of these can produce a six-figure liability claim.
The premium is trivial relative to the risk. €300–€500 a year to transfer that exposure to an ASF-regulated insurer is one of the easiest decisions in the whole AL operation.
Policy checklist
- 01Civil liability to guests and third parties — minimum €500k, ideally €1M+
- 02Buildings cover matched to reconstruction value (not market value)
- 03Contents cover including guest belongings up to a declared cap
- 04Fire, explosion, storm, flood, water damage from own installations
- 05Swimming-pool liability endorsement (specifically named)
- 06Loss-of-rent cover for the AL-registered use, not just residential
- 07Legal-defence and appointed-lawyer costs
- 08Valid Portuguese certificate accepted by Turismo de Portugal and Câmara
Broker, not direct-to-insurer
We send you to independent brokers, not to a single insurer's agent. The reason: the AL market has narrowed to a handful of insurers (Fidelidade, Ageas, Zurich, Generali) and pricing on the same policy can differ by 30–50% between them for the same risk. A broker quotes all of them and picks the best fit for your villa's construction year, occupancy and pool size.
You sign the policy directly with the broker/insurer. No markup from our side, no referral fee. If you already have a policy and want a second opinion at renewal, brokers on our list will quote for free.
ASF, Turismo de Portugal and inspections
ASF (Autoridade de Supervisão de Seguros e Fundos de Pensões) is the Portuguese insurance regulator. Only insurers authorised by ASF can issue a policy that satisfies the AL requirement — an offshore or Lloyd's-of-London-only policy will not be accepted if inspected. Every broker on our list places business exclusively with ASF-authorised carriers.
Câmara Municipal de Loulé and Turismo de Portugal can request proof of valid AL insurance at any inspection. Keep the current certificate in the property (paper) and in your AL folder (digital). We include an insurance-check step in our owner onboarding for exactly this reason.
Common questions
Is AL insurance mandatory in Portugal?+
Yes. Article 13.º-A of Decreto-Lei 128/2014 (as amended in 2018) requires every AL operator to hold a multi-risk insurance policy covering civil liability to guests and third parties, including fire and other risks that could affect guests or neighbours. Absence of a valid policy is grounds for AL registration cancellation.
Doesn't my normal home insurance cover this?+
No. Standard Portuguese multi-riscos habitação policies explicitly exclude commercial short-let use. If a guest is injured and you make a claim on a standard policy while the property is registered as AL, the insurer will decline and may pursue subrogation. You need a specific AL rider or a standalone AL policy.
How much does AL insurance cost?+
Typical annual premiums for a 3-bed villa in Vilamoura: €280–€600 for buildings + contents + AL civil liability (€500k–€1M cover). Apartments run €180–€400. Add €80–€150 for higher liability caps (€2M+), swimming-pool endorsements or high-value contents.
What does the policy typically cover?+
Buildings (fire, storm, water damage, glass), contents (furniture, appliances, guest belongings up to a cap), civil liability for guest injury and damage guests cause to neighbours, loss of rent for uninhabitable periods after a claim, and legal-defence costs. Pool liability, host cancellation and cyber cover are usually optional add-ons.