THE ESSENTIALS
Before you start
- The default rule allows transfer, subject to different legislation or contract terms.
- Where policyholder and insured are the same person, the law links transfer taking effect to notifying the insurer.
- Giving the buyer a policy copy does not show that this notification occurred.
Identify the contractual roles first
Article 95(2) of the Portuguese Insurance Contract Act sets a default rule: where the insured property is transferred and the policyholder is also the insured, the contract passes to the buyer unless legislation or an agreement provides otherwise. Under that rule, the transfer only takes effect after notification to the insurer.
If policyholder and insured are different people, do not copy that conclusion without examining their roles. Paragraph 3 deals with the transfer of a specified insured party’s position to the buyer, again subject to different legislation or agreement and the rules on increased risk. Identifying names and capacities is therefore Rui and Clara’s first task.
Read the clause in your actual policy
As a contractual example, clause 17 of Generali Tranquilidade’s Multirrisco Casa terms, the July 2025 model linked from its current page, makes the insurer’s obligation towards the new owner depend on notification unless agreed otherwise. It refers to notification by policyholder, insured or legal representatives and preserves the increased-risk framework. This is an example to locate the question, without recommending the product or automatically applying it to another policy.
Read general terms together with the particular terms and endorsements that actually form part of the contract. Ask for clarification if another provision addresses sale or termination. Do not substitute an advertisement, a receipt still within the policy year or an informal statement that the buyer “gets everything” for that examination.
Notifying the insurer differs from handing over keys
As a preparation method, gather the policy reference, property and parties’ identification, the transaction and its documented effective date. Ask which channel and supporting evidence notification requires, and keep proof of completing it. A conversation only between seller and buyer does not demonstrate that the insurer was informed.
In the fictional example, Rui plans to hand over the keys on Friday but has not confirmed notification to the insurer. Clara flags that outstanding step before Rui presents his policy as the buyer’s protection. The example creates no grace period, confirms no retrospective start and determines no cover for a claim between those dates.
Transfer does not mean everything continues indefinitely
Article 95(4) allows the buyer and insurer to terminate under the general rules once the policyholder’s position has transferred. This does not establish one cancellation deadline for every sale. If termination or replacement is intended, ask about its basis, effective date and applicable documents before treating the matter as settled.
Where a security interest exists over the property, Article 97(2) distinguishes the creditor’s role: transfer resulting from the property’s transfer does not depend on the creditor’s consent, but the insurer must notify the creditor if properly identified in the policy. This does not settle the lending transaction or replace checking how the creditor is addressed in the case’s documents.
Finish with the correct property and belongings
Compare the transfer document, notification and response received. Check who becomes policyholder and insured, which building and contents are concerned and the confirmed dates. If Rui takes furniture to another home, do not treat it as sold merely because it appears in the same policy. Separate transferred belongings from those still needing protection elsewhere.
Use policy support to clarify an existing policy. To compare protection for a home you will acquire or retain, select MR Habitação under Request a quote on the RMACHADO website. A quote does not transfer, cancel or activate a contract. A legal disagreement about the sale or the parties’ rights may require separate legal advice.
KEEP THESE QUESTIONS
Your checklist for the next conversation
- Identify policyholder, insured and buyer, and read the applicable clause.
- Prepare notification to the insurer and keep proof and its response.
- Check dates, contractual roles and any identified creditor.
- Separate transferred property and contents from belongings moved elsewhere.
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.
- Diário da República — Regime Jurídico do Contrato de Seguro, artigos 95.º e 97.º completos; consolidação em vigor, última alteração indicada 17/03/2026; lidos em 01/11/2026 ↗
- Generali Tranquilidade — Multirrisco Casa, condições gerais Mod. 465.031, julho de 2025, cláusula 17.ª completa, p. 15 de 102; PDF ligado na página atual, lido em 01/11/2026 ↗
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.