Comparison of Mandatory Real Estate Insurance in Brazil

Published on October 1, 2025 and written by Cyril Jarnias

In a vast and diverse country like Brazil, where urban landscapes blend with tropical forests, real estate holds considerable importance, both as an individual investment and a pillar of the national economy. Yet, engaging in the purchase or rental of real estate in Brazil requires a clear understanding of the mandatory insurances associated with it.

These insurances, essential for protecting investments, vary by region and property types, making the choice of adequate coverage a potential challenge for foreign and local investors. This article aims to clarify these nuances and provide a detailed comparison that will help owners and potential buyers navigate this complex landscape with confidence.

Comparison of Home Insurance in Brazil

The home insurance market in Brazil is driven by generalist players (Porto Seguro, Bradesco Seguros, Tokio Marine, Allianz) and new digital entrants like Nubank through a partnership with Chubb, in a context of still low but growing residential penetration.

Main Companies and Offers

• Porto Seguro (major non-life insurer): home insurance portfolio with damage, theft, liability, and assistance services, leading position among non-life insurers.
• Bradesco Seguros: broad non-life offering including home insurance, distribution through banking network and agencies, market heavyweight.
• Tokio Marine Seguradora: home insurance range (fire, weather events, liability), leading non-life player.
• Allianz Seguros: home coverage with major perils and services, key non-life player in Brazil.
• MAPFRE: multi-channel distribution, presence in home insurance via non-life.
• Nubank Lar Seguro (with Chubb): customizable coverages including fire, theft, electrical damage, storms, rental income loss, civil liability, and a 24/7 emergency network (plumbing, electrical, locksmith, repairs/installation).
• CNP Seguros (bancassurance via Caixa in the Brazilian market): very significant presence in Brazilian insurance, mainly in bancassurance, showing the importance of the banking channel for home insurance.

Price Ranges and Coverage Levels

Leading non-life insurers (Porto Seguro, Bradesco, Tokio Marine, Allianz, MAPFRE) offer modular plans with basic coverage (fire, explosion, lightning strike) and options (theft, family liability, electrical damage, natural events); pricing varies by insured value, location, and options, with intensified digital offerings reducing distribution costs.

The Nubank Lar Seguro offering illustrates flexible, customer-oriented pricing, with options for partial or full reimbursement depending on covered events and insured items.

Comparison of General Terms (Usual Practices)

Usually Covered

• Fire/explosion/lightning and damage to building and contents.
• Qualified theft of contents with or without break-in depending on option.
• Electrical damage to appliances and installations.
• Weather events (storms, hail) depending on option, and rental income loss for owners (if subscribed).
• Civil liability family/occupant for damage to third parties.
• 24/7 Assistance (plumbing, electrical, locksmith, minor repairs).

Frequent Exclusions

• Wear and tear, hidden defects, lack of maintenance, prior claims.
• Intentional acts by the insured, fraud.
• Valuable items beyond specific limits without declaration/endorsement.
• Flooding from river overflow and landslides sometimes excluded or subject to option/endorsement depending on the insurer.
• Unlisted catastrophic events, war, nuclear risks.

Element	What is Usually Included	What is Often Optional	Usual Exclusions
Building and Contents	Fire/explosion/lightning	Theft, weather events, electrical damage	Wear and tear, lack of maintenance
Civil Liability	Basic occupant liability	Extended liability (pool, pets, domestic employee)	Intentional acts
Income	—	Rental income loss	—
Services	24/7 Assistance	Planned work/installation	—

Legal Context and Real Estate Market Practices

Home insurance is generally not legally mandatory for single-family homes, but the real estate market often imposes coverage in specific cases: condominiums and real estate loans require fire/damage coverage by administrators or banks via bancassurance.

The strong presence of banking channels (bancassurance) structures the distribution and enrollment during financing operations and condominium management.

Recent Adoption Statistics

Approximately 17% of Brazilian households have home insurance, with slight recent growth.

The non-life insurance market (including home) is growing, with a CAGR > 5.88% expected 2024–2029, supported by low penetration and the rise of digital and banking channels.

Consumer Reviews and Feedback (Observed Trends)

• Appreciation for 24/7 assistance services for minor domestic emergencies (plumbing, electrical, locksmith), perceived as a tangible benefit beyond indemnification.
• Interest in customizable coverages and fully mobile journeys integrated into fintech platforms (e.g., Nubank), reducing friction in purchase and claims management.
• Expectations for clarity on exclusions (weather events, limits for valuables) and on rental income loss for property owners.

Emerging Trends

• Accelerated digitalization: distribution via apps (fintech/banks), simplified underwriting, online claims management, leveraging platforms like Chubb Studio for product orchestration.
• Fintech-insurer partnerships (e.g., Nubank–Chubb) expanding access to underinsured segments, with modular products and micro-coverages.
• Strengthened bancassurance: confirmed weight of the banking channel in non-life, including home insurance, with groups like CNP/CAIXA illustrating the model’s anchoring.
• Shift towards packaged products combining liability, electrical damage, weather events, and assistance services to increase perceived value, while maintaining competitive prices in a low-penetration market.

Points to Consider When Comparing

• Extend comparison beyond price: coverage limits and deductibles, geographical scope, weather events/flooding options, limits for valuable items, claims settlement time and methods, quality of the 24/7 assistance network.
• Check conditions imposed by the condominium association and by the mortgage lender in case of financing.

Key data: approximately 17% of households insured for home; growing non-life market with CAGR > 5.88% (2024–2029); distribution dominated by banks and new digital channels (Nubank–Chubb), modular offerings including fire, theft, electrical damage, storms, liability and 24/7 assistance.

Property Owner Liability in Brazil

Property owner liability in Brazil stems mainly from the Civil Code (Law No. 10.406/2002), which imposes the obligation to repair damage caused by action or omission, including objectively when the activity by its nature creates a risk to the rights of others, in accordance with the general clause of Article 927, sole paragraph. It interacts with Law No. 8.245/1991 (Tenant Law), which governs the reciprocal obligations of landlord and tenant, as well as with special standards (condominiums, subdivisions) and local regulations.

• Towards tenants, the owner must deliver a property in usable condition, ensure peaceful enjoyment, and cover structural repairs and hidden defects not attributable to the tenant, following the principles of the Civil Code and the 1991 rental regime.
• Towards third parties (neighbors, passersby, co-owners), they are liable for damages resulting from the property and activities related to the property when a failure, lack of maintenance, or created risk materializes, with case law possibly applying strict liability based on the created risk/risk-profit principle under Art. 927.

Risks and Types of Damages Covered

• Material damages: collapses, falling facade elements, infiltrations affecting other units, fires spreading to neighboring properties.
• Injuries and bodily harm: lesions caused by lack of maintenance of stairs, elevators, or common installations when they fall under the owner’s or condominium association’s responsibility.
• Other damages: loss of use, enjoyment disturbances, moral damages in case of security breaches, and, in some instances, environmental damages engaging cumulative civil, administrative, and criminal liability (Art. 225 CF/88).

In Rental Contracts

• Clauses on repair allocation: major/structural repairs borne by the landlord, minor repairs and normal wear and tear by the tenant, subject to the mandatory rules of the Tenant Law.
• Required guarantees and insurances: deposit, surety, rental insurance, and stipulations on home insurance, without these clauses exempting the owner from their legal liability towards third parties when the law provides for the obligation to repair.
• Provisions on defects and maintenance: obligation to deliver a property suitable for the agreed use and to maintain essential safety and habitability conditions during the lease.

In Home Insurance Policies in Brazil

• Owner liability coverage typically covers damages to third parties (bodily, material, consequential immaterial) arising from ownership/occupation, complementing fire, explosion, water damage.
• Insurers adapt clauses to usage (residential vs. commercial) and condominium requirements; coverage does not exempt the owner but transfers the financial risk within the limits, exclusions, and deductibles provided.

Differences Between Residential and Commercial Properties

• Usage and risk level: a commercial activity may be qualified as a “risk activity” under Art. 927, more often justifying strict liability and enhanced safety requirements (public traffic, machinery, storage).
• Regulatory obligations: commercial premises are more likely subject to technical standards, licenses, and inspections; non-compliance increases the owner-landlord’s exposure, especially if structural defects are their responsibility.
• Insurance: insured amounts and extensions (operational liability, business interruption for the occupant) are generally higher and more specific in commercial; in residential, focus on family/owner liability and damages to neighbors.

Concrete Examples of Recent Cases and Disputes Involving Owners

• Landlords held liable for lack of maintenance causing infiltrations and damages to neighboring condominiums, applying principles of the Civil Code and Tenant Law to allocate responsibilities between landlord and tenant based on the cause of the incident.
• Condominium litigation involving falling facade elements and harm to passersby, where the owner’s (or association’s) liability is assessed in light of Art. 927 and lack of maintenance, allowing compensation without proof of fault in the presence of a created risk.
• Environmental liability cases attributing to the owner and operator the restoration and cumulative compensation under Art. 225 CF/88, with a reinforced civil liability regime and preventive, reparative, and repressive functions of environmental law.
• Urban conflicts related to housing rights and possession regularization, where the qualification of property rights and associated obligations influences the maintenance burden and liability towards occupants and third parties in regularized areas.

Implications for Mandatory Insurances and Adequate Coverage

• In condominiums, regulations commonly require building insurance and may impose on owner-landlords to maintain minimum liability coverage; local state/municipal norms and the condominium law govern these obligations.
• For commercial or risk activities, subscribing to specific policies (operational liability, rental liability, environmental risks) is recommended and sometimes required by authorities or contract, to address hypotheses of strict liability from Art. 927.
• Landlords should check: liability amounts and limits towards third parties; extensions for consequential damages (rental income loss, deprivation of enjoyment); exclusions (known undeclared defects, regulatory non-compliances); prevention and maintenance obligations, whose non-compliance may lead to coverage forfeiture.

Comparative Table — Responsibilities and Insurances (Residential vs. Commercial)

Key Aspect	Residential	Commercial
Risk Level	Low to moderate (domestic use)	Often high (public, equipment, storage)
Liability Regime	Presumed fault or objective depending on created risk (Art. 927)	Objective more frequently applied (risk activity)
Lease Contract	Structural repairs by landlord; peaceful enjoyment	Technical clauses, regulatory compliance, safety charges
Typical Insurance	Home + owner/neighbor liability	Operational liability, rental liability, possibly environmental
Regulatory Requirements	Condominium, local norms	Licenses, inspections, sector-specific technical standards

Essential Checklists for Owners

• Check structural compliance and maintenance obligations before and during the lease.
• Include clear clauses on repair allocation and required insurances from the tenant.
• Subscribe to liability coverage for bodily, material, and consequential immaterial damages, with limits adapted to the property’s use.
• Document inspections, maintenance, and compliance actions to reduce fault risk and secure coverage.
• In case of risk activity, extend coverage (environmental, business interruption) and comply with administrative obligations.

Rental Risk Coverage in Brazilian Real Estate

The main rental risks in Brazil include:

• Non-payment of rent and charges (unpaid, delays, property abandonment).
• Damage and deterioration to the property (abnormal wear and tear, unreported incidents, vandalism).
• Contractual disputes (early termination, breach of clauses, security deposit, index adjustments, property restitution).
• Rental vacancy and income loss.
• Civil liability (damages to third parties in the building).
• Operational risks (document fraud, lease legal defects, lack of condition report).
• Crime and security risks (burglaries, theft), higher in large metropolises, impacting claims and guarantee pricing.
• Macroeconomic risks (inflation, indexations, credit decline) affecting tenant solvency and turnover.

Comparison with Mandatory Insurances:

In Brazil, rental insurance is not universally mandatory; the Tenant Law (Law No. 8.245/1991 – “Lei do Inquilinato”) allows the landlord to require a guarantee, but the type of guarantee remains at the parties’ choice (surety, insurance, deposit, etc.).

Usual mandatory insurances concern rather condominiums (e.g., building insurance by the condominium association) and certain real estate loans (insurances attached to the loan), which do not cover rent default nor lease disputes.

Specific rental risks (rent defaults, tenant damages, lease legal fees) are covered via private rental guarantees and not by mandatory building policies.

Available Rental Insurance Options:

• Seguro Fiança Locatícia (rent guarantee insurance): replaces personal surety; typically covers unpaid rent and charges, penalties, legal fees, sometimes damages and painting/restitution.
• Seguro de Aluguel/Proteção de Aluguel: commercial names close to seguro fiança, with packs for damages, property tax, condominium fees, assistance.
• Seguro contra Danos ao Imóvel Locado: focus on damages and restoration.
• Assistance (plumbing, electrical) and tenant liability as additional modules.
• Non-insurance alternatives allowed by law: surety (fiador), security deposit (caução, generally up to three months), capitalization bond (blocked savings product as guarantee).

Main Active Companies:

Major generalist insurers: Porto Seguro, SulAmérica, Bradesco Seguros, Mapfre, Tokio Marine, Allianz, HDI, Zurich.

Specialized players/distributors: Pottencial, Too Seguros, Fairfax, digital intermediation and proptech players (rent receipt and tenant scoring).

Brazilian brokers and real estate platforms offer integrated seguro fiança subscription journeys during rental.

Legal and Regulatory Framework:

• Lei do Inquilinato (Law 8.245/1991): governs urban leases, allows guarantees (fiador, caução, seguro fiança, título de capitalização), sets rules for adjustment, termination, and restitution.
• SUSEP (Superintendence of Private Insurance): supervisory authority for insurance; regulates product conditions, insurer solvency, and distribution.
• Applicable civil norms: Civil Code (contracts, liability), Code of Civil Procedure (collection), condominium legislation (obligation of building insurance by the association).
• Usual rent adjustment indices (e.g., IPCA, IGP-M), impacting covered amounts and default claims.

Why These Insurances are Essential:

For owners:

• Secure rental income streams and reduce financial vacancy risk.
• Transfer legal fees and collection costs.
• Frame post-lease restoration and limit property value erosion.
• Accelerate tenant selection via insured scoring, reducing defaults.

For tenants:

• Avoid mobilizing a surety or significant deposit; faster and more accessible entry.
• Offer assistance and liability protection, reducing unexpected costs.
• Provide budget predictability through premium monthly payments.

International Comparison:

France: GLI covers defaults, damages, and disputes; surety is regulated, and Visale (public guarantee) exists. The Brazilian model is more market-oriented, with coexistence of private options (seguro fiança) and fiador tradition.

United States: prevalence of security deposit, sometimes private “rent guarantee” insurance; coverage heterogeneous by state. Brazil stands out for the penetration of seguro fiança and the use of título de capitalização as guarantee.

Spain/Portugal: deposits and sureties dominate; rent insurance growing, close to French GLI. Brazil has SUSEP supervision and a more standardized packaged offering with assistance modules.

Trends and Recent Developments:

• Digitalization of subscription and risk analysis (open banking, tenant scoring, simplified KYC).
• Product packs combining rent, condominium fees, property tax, damages, and assistance, with faster indemnification.
• Decline of fiador in favor of seguro fiança, driven by owners and property managers.
• Refined pricing by data (neighborhood, typology, history), and adjustments to inflation/rent index increases.
• Partnerships between real estate platforms and insurers for 100% online journeys.
• Integration of capitalização or digital fiança options for tenants without credit history.
• Increased monitoring of claims in high-crime large cities, influencing premiums and prevention requirements.

Synthetic Comparative Table

Element	Rental Risks	Mandatory Insurances (Building/Loan)
Scope	Defaults, damages, disputes, tenant liability	Building damages, common area liability, death/disability related to loan
Beneficiary	Owner-landlord (and sometimes tenant/third parties)	Condominium/bank
Nature	Optional but often required	Mandatory by condominium regulation or loan contract
Indemnification	Rent, charges, legal fees, restoration	Building reconstruction, major claims, loan balance
Alternatives	Fiador, deposit, título de capitalização	None (outside renegotiation)

Checklist for Choosing a Rental Insurance:

• Coverage extent: defaults, damages, legal fees, repainting, property tax/condominium fees.
• Limits/ deductibles and waiting periods.
• Conditions for triggering coverage (proof, notifications, deadlines).
• Tenant acceptance criteria and total cost (annual premium or monthly payments).
• Included assistance services and claims management (digital, indemnification deadlines).
• Indexation and capital adjustment clauses.
• Insurer solidity and rating, SUSEP compliance.

In Brazil, securing rental income primarily happens through “seguro fiança locatícia”, complementary to building insurances, and now widely accessible online; it reduces risk for the landlord while replacing the fiador for the tenant.