When taking out multi-risk insurance, attention should be paid to the amount of capital to be insured.
In the case of property insurance, the amount to be insured should be the reconstruction value. In the case of contents insurance, the replacement value of all items included in the contents should be insured (for example, if you have a television, you should insure the current value of a television with the same characteristics and not the value that the television cost 10 years ago).
What is the reconstruction value?
It is the amount it would cost to build the property or unit in question from scratch. And what is that amount? The most appropriate thing would be to ask a builder and stick to that amount, but this is often difficult to achieve.
To facilitate this (and this is the method used by experts in the event of claim), a decree is used that is published by the state every year, which for 2013 isDecree No. 358/2012. In summary:
Zone I = €793.21
Zone II = €693.38
Zone III = €628.19
Zone I
District and municipal headquarters of the Autonomous Regions, as well as Almada, Amadora, Barreiro, Cascais, Gondomar, Loures, Maia, Matosinhos, Moita, Montijo, Odivelas, Oeiras, Póvoa do Varzim, Seixal, Sintra, Valongo, Vila do Conde, Vila Franca de Xira, and Vila Nova de Gaia.
Zone II
Abrantes, Albufeira, Alenquer, Caldas da Rainha, Chaves, Covilhã, Elvas, Entroncamento, Espinho, Estremoz, Figueira da Foz, Guimarães, Ílhavo, Lagos, Loulé, Olhão, Palmela, Peniche, Peso da Régua, Portimão, Santiago do Cacém, São João da Madeira, Sesimbra, Silves, Sines, Tomar, Torres Novas, Torres Vedras, Vila Real de Santo António, and Vizela.
Zone III
Remaining municipalities on the mainland.
Then just do the math.
You can also assign a value to improvements, elevators, condominium machinery, walls, and fences.
What if the capital is not sufficient?
This is the main reason why companies do not pay the full amount of claims. If, for example, the property is worth €100,000 and the insurance is only for €50,000, the company will claim pay the insured percentage in the event of claim , in this example 50%.
The same applies to theft. There are some types of coverage that operate on a "first risk" basis, where this rule does not apply (usually electrical risks).