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Do insurance policies cover fires? What should people who suffer damages do?

The recent wildfires have caused significant losses, raising questions about insurance coverage. Can properties, including both movable and immovable assets, be insured against fire? How does the process work, and what should people who have suffered losses do?

For real estate, “fire insurance is mandatory in horizontal property, meaning buildings consisting of apartments (condominiums),” explained Eduardo Castro Marques, a partner at Dower Law Firm, in statements to Notícias ao Minuto.

“In this case, insurance should cover each autonomous unit and the common parts of the building, such as the roof, stairs, elevators, garage, among others, according to the share of each unit,” the lawyer explained.

Furthermore, “in acquisitions involving bank financing, home insurance is also mandatory,” that is, in cases where there is a loan to buy the house.

However, “for other properties, whether for housing or not, and excluding business activities for which insurance is mandatory, obtaining such insurance is optional.”

Eduardo Castro Marques explained that “this protection can be provided by a fire insurance or included in a multi-risk insurance“, noting that “in most multi-risk insurances, however, this is a common coverage.”

However, “it is essential to consider and validate the amount of coverage purchased, as these limit potential indemnity values.”

Regarding vehicles, “the only mandatory insurance for vehicles is car liability insurance,” so “this type of coverage, often under the ‘natural phenomena’ or ‘fire, lightning, or explosion’ sections, is optional.”

The lawyer explains that “with regards to insurance, it is important to consider the exclusion clauses that sometimes exclude combustions that have not been accidental.”

“Regarding this type of clauses and their potential validity, it is recommended to consult a lawyer, as circumstances may occur where it is possible to contest them,” he added.

Ordem dos Advogados presta apoio jurídico gratuito às vítimas dos fogos
A Ordem dos Advogados created a ‘Volunteer Lawyers Pool’ to provide free and specialized legal advice to citizens and businesses affected by the wildfires that have been ravaging the country for over two weeks.

What should those who have suffered losses do?

Eduardo Castro Marques points out that “it is very important to file the claim with the insurer in the shortest possible time, within the contract period or, in its absence, within eight days after becoming aware of the incident.”

“At that time, it should be ensured that the report is properly detailed: time, manner, location, circumstances of the incident, damages, and losses. It is important that the information be provided with clarity and objectivity,” he explains.

The lawyer also adds that “at that moment, one should gather all existing documentation“, with the “goal of properly documenting all damages and respective losses.”

“The ideal is to prove, both the existence (e.g.) of the goods and their value,” he concludes, adding that “throughout the various steps it is recommended to maintain a chronology and notes of all steps and events. In case of litigation, it is very important that all data is documented.”

The lawyer also recommends that “after the fire, during the first visit to the site, the condition of the goods should be documented, preferably with photographs, which should then be kept together with the other documentation.”

“Lastly, if medical and/or psychological care is needed during or following the incident, all reports and respective evidence should be collected,” he adds.

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