THE ESSENTIALS
Before you start
- A reasonable and proportionate measure may be considered even if unsuccessful.
- Reimbursement before final settlement has specific conditions.
- Expenses may use the insured amount; check the exceptions.
The outcome is not the only test
Article 126 of Portugal’s insurance contract regime requires the policyholder or insured to use means within their reach to prevent or limit damage following an insured event. Article 127(1) provides for payment of expenses fulfilling that duty when reasonable and proportionate, even if the measures prove ineffective.
This does not mean reimbursement of every project undertaken after a fire. The expense must be connected to preventing or limiting damage and its reasonableness assessed. Put safety first: do not enter restricted areas or attempt work for which you are unqualified; follow the competent authorities and professionals.
Requesting payment before closure is not automatic reimbursement
Article 127(2) provides for these expenses to be paid before the claim is settled where the interested party requests reimbursement, circumstances do not prevent it and the event is covered. The request and evidence need to allow those conditions to be assessed.
D. Graça separates two questions: “can this expense qualify?” and “can it be reimbursed before the process ends?”. For someone living on a pension, advancing an invoice can affect the month’s budget. That need is a reason to make the request clear, rather than a guarantee that it will be paid.
The insured amount needs its own answer
Under paragraph 3, these expenses are deducted from the available insured amount unless they result from the insurer’s specific instructions or the contract provides separate cover. Do not automatically add the expense to the amount shown in the policy.
Paragraph 4 also addresses proportional payment where the insured value is lower than the insured interest, with exceptions for specific insurer instructions or separate contractual cover. Clara suggests keeping any work instruction with the invoice: who instructed the intervention can matter as well as its price.
What to do
1. Stay safe and obtain guidance on necessary measures without intervening in dangerous areas.
2. Keep a timeline, itemised invoice and explanation of the work’s purpose, even if the measure failed.
3. Identify specific insurer instructions and request clarification of the remaining insured amount and any separate cover.
4. If reimbursement is needed before closure, make that request through the policy’s process. A quote for future protection does not replace reporting an existing claim.
KEEP THESE QUESTIONS
Your checklist for the next conversation
- Purpose and timing of intervention documented.
- Reasonable expenses itemised for assessment.
- Insurer instructions retained.
- Early payment request and effect on insured amount clarified.
FROM THE ARTICLE TO YOUR SITUATION
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Sources and transparency
Content updated on .
Consultation dates are stated in individual references when available.
Numerical examples are fictional and explain concepts. Editorial interpretations are identified in the text.
Information from RMACHADO GROUP. This is not an insurance offer or individual advice. Covers, acceptance, exclusions, sums insured and costs depend on the policy. The intermediary does not underwrite the risks.