Financial preparedness

An emergency can have a devastating financial impact. Insurance, an emergency fund, protected documents and knowing how to apply for support can greatly speed up recovery.

The hidden cost of emergencies

After Storm Kristin, many families discovered their insurance did not cover flooding, they had no cash for urgent repairs and they did not know how to apply for government support. Financial preparedness is just as important as physical preparedness.

Home insurance

What to check in your policy

  • Storm cover: usually included, check limits
  • Flooding: many policies EXCLUDE it, add if you live in a risk zone
  • Earthquake: optional cover but highly recommended (add to multi-risk policy, around 81% of homes lack it)
  • Falling trees: check if it covers roof damage and clean-up
  • Lightning/power surge: check appliance cover
  • Rebuild value: update it, construction costs have risen significantly
  • Contents: cover for furniture and belongings, keep an updated inventory

Insurance tips

  • Read the policy BEFORE the emergency, not after
  • Know your deductible (what you pay out of pocket)
  • Photograph and film your entire home and belongings (store in the cloud)
  • Keep receipts for valuable items (appliances, electronics)
  • Compare insurance annually: deco.proteste.pt
  • Multi-risk home insurance: around 100-300 EUR/year (depends on the property)
  • Mandatory condominium insurance covers structure only, not contents

Emergency fund

Accessible cash when everything fails

  • Minimum target: 500-1,000 EUR in an instant-access savings account
  • Ideal target: 3-6 months of fixed expenses
  • Cash in your kit: 50-100 EUR in small notes (5, 10, 20 EUR)
  • In serious emergencies, ATMs and electronic payments may not work
  • Large notes (50, 100 EUR) may be refused by small shops
  • Store notes in a waterproof pouch alongside your documents

How to build your fund

  • Start with 50 EUR/month. In 10 months you will have 500 EUR
  • Set up an automatic transfer on payday
  • Separate account (no debit card) to avoid temptation
  • Use it for REAL emergencies only, not impulse purchases
  • Replenish immediately after use

Financial documents to protect

Physical copies (waterproof pouch)

  • Insurance policies (home, health, life, car)
  • Property deed / rental contract
  • Bank account numbers and IBAN
  • Bank and insurer contact details
  • Recent payslips
  • Latest tax return (IRS declaration)
  • National ID card (Cartao de Cidadao) copy
  • Will / power of attorney (if applicable)

Digital copies (secure cloud)

  • Scan all of the documents above
  • Store in Google Drive, OneDrive or Dropbox
  • Share the folder with a trusted family member
  • Encrypted USB drive as a physical backup
  • Photograph valuable items with the date
  • Home contents inventory (list + photos)
  • Keep receipts for major purchases
  • Update every 6 months

After a disaster: How to access support

Insurance company

  1. Contact your insurer within the first 24-48 hours, the standard deadline to report a claim
  2. Photograph and film ALL damage before cleaning up
  3. Keep receipts for urgent expenses (hotel, essential repairs)
  4. Do NOT carry out permanent repairs before the assessment
  5. Request a claim reference number and the assessor's name
  6. If unsatisfied with the valuation: complain in writing, request a second assessment
  7. Insurance Ombudsman (Provedoria de Seguros): if you cannot resolve it directly

Government support

  • Municipal Council (Camara Municipal): first point of contact for local support (rehousing, materials, essential goods)
  • Social Security (Seguranca Social): emergency financial aid for low-income families (300 502 502)
  • Civil Protection (ANEPC): support during a declared disaster
  • IHRU (housing institute): support for housing rehabilitation
  • Parish Council (Junta de Freguesia): immediate support and guidance
  • In declared disasters: possible credit moratoriums, service suspensions
  • All official support through .gov.pt websites. Be wary of anything else

Beware of post-disaster scams

  • Scammers offer "urgent repairs" at inflated prices
  • NEVER pay upfront for repairs
  • Get 3 quotes before hiring anyone
  • Check that the professional holds a valid licence and liability insurance
  • Be suspicious of unsolicited contact (text messages, calls, door-to-door)
  • Government support is ALWAYS delivered through official channels
  • See our safety guide for more anti-scam tips

Useful contacts

Insurance

  • ASF (insurance regulator): 217 903 100
  • Insurance Ombudsman: asf.com.pt
  • DECO (consumer association): 213 710 200

Social support

  • Social Security: 300 502 502
  • Social Emergency: 144 (24/7)
  • Municipal Council

Consumer rights

Emergency financial checklist

Set aside 30 minutes to: (1) read your insurance policy, (2) check if you have flood cover, (3) photograph your home and belongings, (4) store documents in the cloud, (5) keep 50-100 EUR in small notes in your kit. These 30 minutes could save you thousands of euros and weeks of stress.