THE ESSENTIALS
Before you start
- An agreed percentage differs from an index.
- Identify building, contents and any separate sums.
- Automatic updating does not replace reviewing works and purchases.
Two automatic update methods
ASF distinguishes an agreed-percentage update specified by the policyholder from index-linked updating using published building, contents or combined indices. For compulsory fire insurance it explains annual updating through the owners' meeting decision or, without one, the Building Index. These references do not make every sum in every home policy equivalent.
Sources: ASF — Seguro de Habitação, atualização automática de capitais, consultado em 28/10/2026 ↗
An exercise explaining the mechanism, not today's index
For arithmetic only, imagine a EUR 150,000 building sum and an agreed 3% increase. The result is EUR 154,500. That fictional 3% is not this year's published index, a quote or an assessment of your home.
This answers how the figure grew. Whether it matches the intended insured property remains a separate question. If the starting value was unsuitable, multiplying it by a percentage does not establish that the gap disappeared.
Keep a separate list of actual changes
Record works, floor-area changes and significant purchases since the previous review. For each, identify available documents and the policy item requiring clarification. Keep building and contents separate: an increase to one does not establish that the other was reviewed.
At a condominium meeting, assign concrete tasks: obtain the current assessment, identify the resolution and clarify the contractual mechanism. Minutes should distinguish an approved figure from an amendment already confirmed by the insurer.
Compare the notice, policy and need
Place the previous and new sums, update clause and current risk description together. If the observed percentage is unclear, ask about its basis and period. Do not infer adequacy from a premium change: pricing and asset valuation are different questions.
For a quote or review with RMACHADO, identify the mechanism found and outstanding changes. The purpose is to understand how the sum was set and updated, without forecasting a claim payment or promising elimination of underinsurance.
KEEP THESE QUESTIONS
Your checklist for the next conversation
- Identify the update mechanism and reference.
- Separate building and contents values.
- List works and purchases still needing review.
- Keep confirmation of the effective amendment.
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.