The Portuguese Insurance Regulator has published a technical note explaining how it calculates the indices used to update sums insured under fire and natural elements insurance policies covering housing risks and under home multi-risk policies. The indices are calculated quarterly using a series of values observed in the corresponding quarter of the previous year. The Building Index uses the overall labour cost index at 60% and specified construction material cost indices at 40%, with weightings for ceramic products, tiles and mosaics, cement, reinforcing steel, pine wood, exotic woods, bitumen in drums and bare copper wire. These inputs are published by the Institute for Public Markets, Real Estate and Construction. The Home Contents Index uses consumer price indices published by Statistics Portugal for clothing and footwear at 20% and household accessories, domestic equipment and home maintenance at 70%, plus the EUR price of one ounce of gold published by the Bank of Portugal at 10%. The combined Home Contents and Buildings Index weights the Building Index at 60% and the Home Contents Index at 40%.
Portuguese Insurance Regulator (ASF) 2026-05-07
Portuguese Insurance Regulator publishes methodology for quarterly sum insured update indices on residential fire and home multi-risk policies
The Portuguese Insurance Regulator has issued a technical note detailing the methodology for calculating quarterly indices used to update sums insured under fire, natural elements and home multi-risk insurance policies covering housing risks. It explains the composition and weightings of the Building Index, the Home Contents Index and the combined index, based on labour and construction cost indices, consumer price indices and the EUR price of gold published by national authorities.