The damage is below the building sum insured: can underinsurance still matter?

Clarify the relevant relationship

The ASF home-insurance guide explains a proportional rule where the sum insured is below reconstruction cost. A partial loss being below the headline sum therefore does not settle the calculation. Identify the valuation basis, applicable clause and any terms affecting the result before calculating. Do not apply one formula to every policy without reading its wording.

Sources: ASF — Seguro de Habitação, edição de 2021, p. 14 — consultado em 24/10/2026 ↗

A fictional calculation

Fictional, simplified example: assume reconstruction cost of €400,000, a €300,000 sum insured and an assessed covered loss of €20,000. The insured-to-reconstruction ratio is 75%; applying that ratio alone to the loss gives €15,000. This is not an indemnity offer: excesses, limits, terms and the claim assessment are not calculated here. The figures only show why comparing the repair bill with the headline sum is insufficient.

A practical task for the administrator

For the next review, identify the basis used to set the sum insured and when it was estimated. Record works or changes not yet discussed with the insurer separately. A figure in meeting minutes does not demonstrate that the policy records were updated. Where unit and condominium policies coexist, ask for the scope of each rather than adding their sums together indiscriminately.

Prepare a review rather than predict a settlement

The aim is to improve questions before a loss, not predict an insurance payment. On rmachado.group choose Habitação and explain that you want the building valuation and proportional rule reviewed in a condominium context. The assessment depends on the risk, contract and appropriate documents. This numerical illustration does not guarantee cover.