Unpaid Rent Insurance (GLI): How It Works in Portugal

Rent insurance guarantees that the landlord continues to get paid even when the tenant stops paying — and it usually also covers the legal expenses of eviction.

The problem

Without insurance, a default is 100% borne by the landlord: lost rent, legal costs, fees, and months of uncertainty. For those who rely on rent to pay a mortgage, it is a direct threat to personal solvency.

How it works, in practice

• Prior tenant screening — the insurer requires a credit score.
• Guaranteed payment — in case of default, the insurer pays within the policy limits.
• Legal support — many policies include the cost of eviction.
• Limits and deductibles — it is important to know the caps and waiting periods.

The difference in euros

With insurance, the landlord gets paid; without insurance, they bear the average €5,400 to €10,800 of an eviction alone. The annual premium is a fraction of this risk.

Frequently asked questions

Does the insurance pay from the first month?

It depends on the policy — there are waiting periods and coverage limits that you should check before purchasing.