The essentials
Portuguese law requires two insurance policies for short-term rentals: public liability insurance, with a minimum of €75,000 guaranteed capital per claim, which applies to all registered properties; and fire insurance, required for apartments in multi-unit buildings. Both must be declared through the Single Electronic Counter (BUE) at ePortugal.gov.pt at the time of registration. Whenever the insurance changes — renewal or new insurer — the updated policy must be notified to the BUE within 10 days. Failure to maintain valid insurance is one of the legal grounds for cancellation of the RNAL registration number.
Portuguese law requires all short-term rental operators to hold two types of insurance: public liability insurance, mandatory for every registered property; and fire insurance, required for apartments in buildings with multiple units. Both must be declared to the government portal at the time of registration, and any change to the policy must be notified within 10 days. Failing to maintain valid insurance is one of the legal grounds for cancellation of a property’s RNAL registration number.
This guide covers what the law requires, what the policies cover, how to notify the portal, and what happens if the insurance lapses.
What the law requires
Article 13.º-A of Decree-Law 128/2014 — restated in full by Decree-Law 76/2024 — establishes two mandatory insurance policies for all short-term rental establishments in Portugal:
- Public liability insurance, with a minimum guaranteed capital of €75,000 per claim
- Fire insurance, mandatory for properties in horizontal property (apartments in a multi-unit building)
The licence holder is jointly liable for damage caused to guests and third parties. The minimum conditions for the liability insurance contract are defined by Ministerial Order 248/2021 of 29 June (Portaria n.º 248/2021).
Public liability insurance — what it covers and what the law requires
Public liability insurance is mandatory for all short-term rental categories: houses, apartments, accommodation establishments, rooms, and hostels. The minimum guaranteed capital is €75,000 per claim, as set by Article 5 of Ministerial Order 248/2021.
The policy covers patrimonial and non-patrimonial damage caused to guests and third parties by acts or omissions of the licence holder in the course of providing accommodation services (Art. 2, Ministerial Order 248/2021). The policy may include an internal deductible, but the insurer must always pay the full compensation owed to the injured party — the deductible amount is recovered from the insured separately.
The €75,000 minimum applies per claim, not as a total annual cap. Owners with higher-capacity properties or higher-value assets should assess with their insurer whether this capital is sufficient. The policy also provides cover for claims submitted up to two years after the contract ends, provided the event generating the claim occurred during the coverage period.
Standard exclusions under Article 4 of Ministerial Order 248/2021 include damage caused by force majeure events (earthquakes, hurricanes), terrorism, work accidents involving employees, and damage to family members who live with the licence holder.
Fire insurance — when it is required
Fire insurance is mandatory only for properties in horizontal property — that is, apartments within a building containing multiple autonomous units. For standalone houses, the law does not require it, though most home insurance policies include fire coverage as standard.
If you already have an active home insurance policy with fire coverage, it may satisfy this requirement — confirm with your insurer whether the policy covers short-term rental activity. Some standard residential policies expressly exclude commercial or tourism activities in the property. If they do, you will need a specific policy or an endorsement.
How to notify the portal
Insurance notification is required at two moments: at initial registration and whenever the policy changes.
At the time of registration
Short-term rental registration is done by prior notice to the municipality, submitted through the Single Electronic Counter (BUE) at ePortugal.gov.pt. The submission form includes a dedicated field for public liability insurance details: insurer name, policy number, and guaranteed capital. These details become part of the RNAL registration record. For a full walkthrough of the registration process — tax registration, required documents, and municipal objection periods — see our guide on the short-term rental registration process in Portugal.
After each policy renewal or change of insurer
Whenever the insurance changes — annual renewal with a new policy number, change of insurer, or amendment of terms — the licence holder has 10 days to notify the BUE via ePortugal.gov.pt, using the registration data amendment option and attaching the new policy document. This deadline is set by Article 8(2) of Ministerial Order 248/2021. Failure to notify within 10 days can result in cancellation of the RNAL registration.
The insurance contract lapses automatically if the property ceases operating as a short-term rental or if the RNAL registration is cancelled (Art. 8(1), Ministerial Order 248/2021).
How much does public liability insurance cost
A policy with the legal minimum of €75,000 guaranteed capital typically costs between €100 and €300 per year, depending on the insurer, the property type, maximum capacity, and location. Main insurers operating in this segment in Portugal include Fidelidade, Tranquilidade, Generali, and Lusitânia, among others.
When requesting quotes, confirm that the policy explicitly covers short-term rental activity — some generic liability policies exclude tourism accommodation. Requesting quotes from at least two insurers is advisable before committing to a policy.
What happens if the insurance lapses
Absence of a valid public liability insurance policy is one of the express grounds for cancellation of the RNAL registration, as set out in Article 9 of Decree-Law 128/2014. The municipal president can cancel the registration when the licence holder no longer holds active insurance or when the policy details on record are out of date.
This is not a theoretical risk. In May 2026, Porto processed the cancellation of 1,413 short-term rental registrations, with failure to notify updated insurance details being the primary cause identified.
Cancellation is not immediate — the process includes notification to the licence holder and a period to remedy the situation. But a cancelled registration means the property must suspend operations until a new registration is obtained.
Insurance and property management
Tracking insurance renewal dates, notifying the portal within the 10-day deadline, and ensuring the RNAL record is always current are part of the ongoing compliance obligations of a short-term rental — alongside SIBA/AIMA guest reporting, tourist tax collection, and RNAL data maintenance.
For owners who prefer to delegate these obligations, Host Wise’s short-term rental management service includes support with legal compliance across all registered properties.
What you need to know
- Public liability insurance: mandatory for all short-term rentals — minimum €75,000 per claim (Art. 5, Ministerial Order 248/2021)
- Fire insurance: mandatory for apartments in horizontal property (multi-unit buildings)
- Notification: declared in the BUE at registration; any change notified within 10 days (Art. 8(2), Ministerial Order 248/2021)
- Estimated cost: €100–300/year for the legal minimum coverage
- Lapsed insurance: grounds for RNAL cancellation (Art. 9, Decree-Law 128/2014)
Frequently Asked Questions
Portuguese law (Article 13.º-A of Decree-Law 128/2014) requires all short-term rental operators to hold public liability insurance with a minimum guaranteed capital of €75,000 per claim, as specified by Ministerial Order 248/2021. Apartments in multi-unit buildings must also have fire insurance. Both must be declared to the government registration portal.
No. Fire insurance is only mandatory for properties in horizontal property — apartments within a building with multiple autonomous units. It is not legally required for standalone houses, though most home insurance policies include fire coverage as standard. Check with your insurer whether your existing policy covers short-term rental activity.
At initial registration, insurance details (insurer, policy number, and guaranteed capital) are submitted as part of the prior notice form through the Single Electronic Counter (BUE) at ePortugal.gov.pt. Whenever the insurance changes — renewal, new insurer, or policy amendment — you have 10 days to notify the BUE via the registration data amendment option, attaching the new policy document (Art. 8(2), Ministerial Order 248/2021).
If the insurance on record lapses and is not replaced within 10 days of the change, the municipal authority can cancel the RNAL registration. Absence of valid insurance is one of the express legal grounds for cancellation under Article 9 of Decree-Law 128/2014. In May 2026, Porto cancelled 1,413 registrations, with failure to notify updated insurance being the main cause.
It depends on the policy terms. Some standard home insurance policies expressly exclude commercial or tourism activities in the property. Check with your insurer whether the public liability and fire coverage applies to short-term rental activity. If it does not, you will need a separate policy or an endorsement specifically covering short-term rental operations.
A public liability policy meeting the legal minimum of €75,000 guaranteed capital typically costs between €100 and €300 per year, depending on the insurer, property type, maximum guest capacity, and location. Request quotes from at least two insurers and confirm that the policy explicitly covers short-term rental or tourism accommodation activity.