Insurance covers fires? What should someone do if they suffer losses?

The damage caused by the recent fires is substantial, and as assessments are made, questions may arise regarding insurance coverage. After all, can property – both movable and immovable – be insured against fire? How does it work? And what should people who suffered losses do?

Regarding real estate, "fire insurance is mandatory in horizontal property, that is, buildings made up of apartments (condominiums)," said Eduardo Castro Marques, partner lawyer at Dower Law Firm, in a statement to Notícias ao Minuto.

"In such cases, the insurance must cover each autonomous unit as well as the common parts of the building, such as the roof, stairs, elevators, garage, among others, according to the proportional share of each unit," the lawyer explained.

In addition, "in purchases involving bank financing, home insurance is also mandatory," meaning in cases where there is a loan to buy the property.

However, "for other properties, whether residential or not, and except for economic activities for which mandatory insurance exists, taking out such insurance is optional."

Eduardo Castro Marques explained that "this protection can be ensured by a fire insurance policy or included in a multi-risk insurance policy," noting that "in most multi-risk insurance policies, this is, however, a common coverage."

Still, "it is essential to consider and validate the coverage limits, since they restrict the potential compensation amounts."

As for vehicles, "the only mandatory insurance is third-party liability motor insurance," therefore "this type of coverage, often listed under 'natural phenomena' or 'fire, lightning, or explosion,' is optional."

Points to Keep in Mind

The lawyer explains that "with insurance policies, it is important to take into account exclusion clauses, which sometimes exclude combustion that was not accidental."

"Regarding such clauses and their potential validity, it is advisable to consult a lawyer, since situations may arise where they can be challenged," he added.

What Should People Who Suffered Losses Do?

Eduardo Castro Marques points out that "it is very important that notification to the insurance company is made as soon as possible, within the deadline set out in the contract, or if absent, within eight days after becoming aware of the incident."

"At that moment, the notification must be detailed: time, manner, place, circumstances of the incident, damages, and losses. It is important that the information is provided with clarity and objectivity," he explains.

The lawyer also adds that "all existing documentation should be gathered at that stage," since the "goal is to properly document all damages and related losses."

"The ideal is to prove both the existence (e.g., of the items) and their value," he concludes, adding that "throughout the various proceedings, it is advisable to maintain a chronology and notes of all steps and events. In the case of litigation, it is crucial that all data is documented."

The lawyer also recommends that "immediately after the fire, during the first visit to the site, the condition of the goods should be documented, especially with photographs, which should be kept together with the rest of the documentation."

"Lastly, if medical and/or psychological care is needed at the time of the incident or afterwards, all reports and supporting documents should be collected," he added.