Insurance for an alojamento local in Portugal: what is mandatory

Every alojamento local (AL) in Portugal must have civil liability insurance that covers damage to guests and to third parties caused by the accommodation service. Turismo de Portugal's guide sets the minimum cover at €75,000 per establishment per claim. If the AL is in a building under horizontal property, the operator must also prove valid insurance against fire damage. If the policy ends while the AL keeps operating, the municipality must be told within 10 days, with the new policy.

What the liability insurance must cover

The operator has to take out and keep valid extra-contractual civil liability insurance that guarantees the property and non-property damage caused to guests and to third parties by the lodging activity. The same rule makes the operator jointly liable with guests for damage that guests cause to the building. That is a legal point about who answers for damage, not a promise that the policy pays for every damage, so read what your policy actually covers.

Minimum cover

Turismo de Portugal's guide to the legal regime sets the minimum capital at €75,000 for each AL establishment, for each claim. This figure comes from the February 2021 edition of the guide. Rules can change, so confirm the current minimum with Turismo de Portugal, your municipality or your insurer when you arrange the policy.

If the AL is in a building under horizontal property

When the establishment is part of a building under horizontal property (a condominium building), the operator must also take out, or prove the existence of, a valid insurance that covers property damage caused directly by fire in or originating from the establishment.

If the policy ends

When the insurance contract ends for a reason other than the end of the operation or the cancellation of the registration, the operator must tell the municipality through the single electronic counter, as a data change with the new policy, within 10 days. Otherwise the registration can be cancelled.

What to check before you sign a policy

• It names the establishment and covers guests and third parties.
• The cover is at least the current minimum per claim.
• If you are in a condominium building, the fire cover is proven too.
• You know who pays the premium and who gets the renewal reminder.
• You know what to do, and who tells the municipality, if the policy ends.

How this fits with a manager

A manager does not replace the operator's legal obligations, so ask how each one is handled and who pays: the registration, the insurance and the complaints book. At Urbanis we handle guest vetting, deposits and insurance claims for damage, with photo evidence, and we report repairs in the owner's dashboard. For the rest of the legal checks, read our guides on registering an AL in Porto and on choosing an AL management company, or see Urbanis Residences.

Frequently asked questions

Is insurance mandatory for an alojamento local?

Yes. Civil liability insurance covering damage to guests and third parties is mandatory, according to Turismo de Portugal's guide.

What is the minimum cover for AL insurance?

€75,000 per establishment per claim, according to Turismo de Portugal's guide (February 2021 edition). Confirm the current figure when you arrange the policy.

Do I need fire insurance for an AL in an apartment building?

Yes. If the AL is in a building under horizontal property, the operator must take out or prove valid insurance covering property damage caused by fire in or from the establishment.

What happens if my AL insurance ends?

You must tell the municipality through the single electronic counter within 10 days, with the new policy, or the registration can be cancelled.

Related guides

• How to choose an AL management company in Porto
• How to register an alojamento local in Porto in 2026
• What a short-term rental manager does for owners in Porto

This article is general information, not legal or insurance advice, and does not replace guidance from a professional on your specific case.