The importance of home contents insurance to protect and sell better

What is home contents insurance?

Contents insurance is a type of home insurance designed to protect all the movable belongings inside your property, such as:

• Furniture

• Appliances

• Electronic equipment

• Decorative items

• Clothing and personal belongings

This insurance can be purchased separately or bundled with building insurance (multirisk home insurance), which typically covers the structure of the property itself (walls, roof, systems, etc.).

While not mandatory by law, contents insurance is strongly recommended for any homeowner, especially when preparing to sell the property. After all, any accident during visits or negotiations can lead to significant losses – especially if the home is furnished.

Why is contents insurance important when selling a property?

When putting a property on the market, the goal is to create an image of trust, security, and value. Having valid contents insurance sends precisely that message. Here are some of the top reasons it helps during the sale process:

1. Protects your belongings during visits

During the sale process, the property is visited by prospective buyers, agents, appraisers, photographers, and more. This increased foot traffic raises the risk of accidents or damage.

Contents insurance covers damage caused by third parties, helping avoid legal disputes and losses for the homeowner.

2. Enhances perception of care and maintenance

When a potential buyer learns that the property has active contents insurance, they see it as a sign of responsibility and good maintenance.

This attention to detail can help your home stand out from others on the market, particularly if you're looking to sell your apartment.

3. Facilitates the sale of furnished properties

Many properties in Portugal are sold with some or all of the furniture included. In these cases, contents insurance is vital because it directly protects the items being sold.

It can also support the price negotiation, ensuring that furniture remains in good condition until the sale is finalised.

Contents insurance vs. building insurance

It’s important to distinguish between these two types of cover:

• Building insurance: covers the structure of the home – walls, roof, windows, plumbing, etc.

• Contents insurance: covers what’s inside – the movable goods that furnish the property.

For those preparing to sell, both types of insurance are recommended. However, contents insurance is especially relevant for fully furnished and well-decorated homes.

When and how to take out contents insurance?

Ideally, contents insurance should be arranged when preparing the property for sale. Alongside essential paperwork like the energy certificate and floor plans, property sale documents are crucial. Insurance adds a further layer of seriousness to your offer.

Tips when taking out contents insurance:

• Create a detailed inventory of the home’s contents

• Keep invoices or receipts for high-value items

• Compare quotes from multiple insurance companies

• Inform your real estate agent that the home is insured

How contents insurance can help close the deal

In a competitive market, every detail counts. When a buyer is comparing two similar homes, the presence of contents insurance can influence their sense of security and perceived value.

Consider a buyer from abroad or someone relocating for the first time. Knowing they’re buying a well-cared-for and protected property offers peace of mind. Additionally, offering to keep the insurance valid until the handover can be an added value in negotiations.

Professional support makes all the difference

Having the support of an experienced real estate team is key to maximising the benefits of contents insurance and other value-adding strategies. Engel & Völkers, for example, works with specialists who can:

• Recommend the best insurance options

• Integrate insurance details into your property listing

• Help position the property more competitively

With the support of qualified real estate consultants, the process becomes smoother, safer, and more effective.

Other ways to boost your home’s value

Alongside contents insurance, there are several other smart ways to increase your property’s appeal:

• Carry out small repairs or upgrades

• Ensure the home is clean and decluttered

• Use home staging techniques

• Request a local real estate market study

• Find out how much your property is worth 

Combined with up-to-date insurance, these efforts lead to faster and more profitable sales.

What about capital gains tax?

It’s also worth considering the tax impact of the sale. If the home is sold for more than the purchase price, the profit may be subject to capital gains tax. In Portugal, this is part of the real estate capital gains taxation system.

While contents insurance won’t directly influence this calculation, it can contribute to perceived value and help justify your asking price.

Protect to add value

Selling a home isn’t just about finding a buyer – it’s about building a value proposition. In this process, home contents insurance should not be seen as a cost, but rather as a tool for added value, protection, and credibility.

Homeowners who implement this strategy show professionalism and significantly increase their chances of selling under the best conditions.

If you're considering putting your home on the market, speak with Engel & Völkers. Our team will guide you in preparing your property, gathering the necessary documents, determining the right price, and positioning it in the most competitive way possible.

Because selling well means selling with confidence – and with protection.