The study, conducted by Portuguese insurtech Mudey, found that many people believe they understand home insurance well, yet struggle to answer basic questions about their own policies. The findings suggest that while home insurance is a common product, many consumers remain unclear about its purpose, coverage and value.

The results suggest many Portuguese may be overestimating their understanding of home insurance. Although almost 40% of respondents reported a high level of knowledge, when asked practical questions about insurance cover and legal requirements, most struggled to answer correctly.

The lack of awareness becomes even more evident when homeowners are asked about their own protection. A considerable number admitted they did not know whether their policy covered risks such as earthquakes, storms or other natural events.

The survey also revealed mixed feelings towards home insurance overall. While most respondents expressed reasonable satisfaction, around 40 per cent said they were unhappy with their policy.

Price appears to play an important role in shaping opinions. Just over half of the participants considered the amount they pay for insurance to be fair, while more than a quarter felt it was too expensive. Surprisingly, a fifth of respondents said they did not even know how much they were paying.

Another factor influencing satisfaction is the reason people purchased insurance in the first place. Homeowners who actively chose insurance to protect their property reported higher satisfaction than those who purchased it because it was required by a bank or the law.

This is particularly relevant in Portugal, where home insurance is often linked to mortgage agreements. Among homeowners with an active mortgage, the majority said they took out insurance because their bank required it. Once the mortgage is paid off, however, many choose to cancel the policy altogether.

According to Mudey, this suggests that many consumers initially view home insurance as an obligation rather than a form of protection. Over time, however, some begin to recognise its value and continue the cover even after the original requirement disappears.

The company argues that improving consumer understanding should be a priority for the insurance sector. Better access to information and clearer explanations of coverage could help people make more informed decisions and appreciate the protection they are paying for.

Ultimately, the survey points to a simple conclusion: homeowners who better understand their insurance are more likely to see its value and feel satisfied with the product.