Lisbon, April 29, 2026 (Lusa) - The government has announced the creation of a fund for natural and seismic disasters, linked to compulsory home insurance, backed by a solidarity mechanism to ensure universal access.

Prime Minister Luís Montenegro announced the fund during the presentation of the final version of the Portugal Transformation, Recovery and Resilience (PTRR) programme in Lisbon.

"We cannot convey to society the idea that the state can pay for everything for everyone all the time; that simply does not exist and is not sustainable; it undermines Portugal’s social structure and our ability to have a fairer society," he said.

The proposed fund is intended to be tied to a compulsory insurance scheme for homes and the physical infrastructure of businesses, he said.

“Naturally, a step of this magnitude must safeguard social solidarity, meaning the state will not fail to help those facing economic and financial difficulties and will fund their access to this compulsory insurance scheme,” he said, adding that this measure will have a major impact on civic, social and economic organisation.

"We must reconcile the public responsibilities we have assumed with the complementary nature of the social system, the system of interaction with private organisations, and the structures of society," he added.

Additionally, he said that the government had never intended to downgrade the requirements placed on the insurance sector to fulfil its responsibilities, saying that the state would not act as a replacement for insurance.

He concluded that the fund was built upon two main guiding principles: the introduction of compulsory home insurance providing clear and sufficient disaster cover, and a public support mechanism to assist those facing financial hardship.

SMA/MYAL // ADB.

Lusa