YOUR money

RICARDO CHAVES IS ON THE PLUS TEAM AND ANSWERS

YOUR QUESTIONS ON THE ISSUES THAT AFFECT YOUR LIFESTYLE HERE. THIS MONTH, THE FOCUS IS ON HEALTH INSURANCE, DOMESTIC STAFF AND HOUSEHOLD MATTERS

In the heavy rains in January, one of my dry-stone garden walls was damaged. I photographed it and contacted the insurance company who sent someone over and I was told to get a formal quote. I can go to a building company, no problem, but I would rather use a local fellow who specialises in this work. He is not a company, but an individual and would not be able to supply a written quote. He would, however, be far cheaper and better than a non-specific building firm. What do I do?

The first step is to get a formal quote, and if the individual you find can’t produce one there could be a problem. The insurance company will send an expert to evaluate the damage, and based on the quote (which they need) and their analysis of the situation, they will decide what amount they will pay you.

However, depending on the insurance company, you may be able to receive the compensation before you order the repairs. So, this means that you may be able to choose your local fellow and pay him directly.

Health insurance. I am paying a hefty annual fee to an international insurer for my wife and me and our adult daughter, who lives with us. However, since Covid, we have not travelled much, and not outside Europe so have not needed health coverage for other countries. It seems crazy to be spending so much, so is there a solution you would recommend? We are both in our mid 70s and my daughter is 55. We have both had procedures in the past couple of years which were paid in full, as were hospital bills, tests, etc. We have not explored the services of the local health centre, but I think we would prefer to have the freedom to go private for anything of importance.

Although the public health system in Portugal is in most cases good and inexpensive, it’s always recommended to have private insurance.

You should speak to your insurance company and adjust your plan to your needs. If there are covers that you are not using, you may be able to adjust your insurance and save some money on the annual rate.

Changing provider is possible, but due to age, it can be a problem, as the new provider might not offer the same coverage that you currently have. This is because many insurance companies base their plan on the client’s age, so if you join now, you might be joining a plan that is not as complete as your current one.

But you should still speak to an insurance specialist who should be able to advise you on the best options available for your circumstances.

Our maid of many years is retiring now and our new cleaning lady has asked for an hourly rate, which is fine, but she has told my wife that she is entitled to two extra months’ wages by law, in December and June. Is this correct?

Yes, a domestic worker is entitled to receive 14 monthly salaries per year. Although they do not come under the Portuguese labour law, domestic workers have their own legislation that determines their rights and obligations.

This is an area where it would be sensible to seek legal advice. But please be aware that you must pay social security, a work’s accident insurance and 14 months’ pay.

Normally the two extra months are paid in the month when the worker is on their annual holliday, and just before Christmas (before the 15th of December).

Please note that a domestic worker or any other employee is also entitled to 22 weekdays of annual holidays and that their work schedule (including extra hours) cannot exceed 44 hours per week.

I am selling my flat in the UK and would like to invest part of the money here in Portugal, where I live and have a fully paid-for home. What’s the best starting point to get a transparent view on this? I am looking at around £450,000 but not convinced I should buy a property to rent out.

You should seek advice from an estate agent. They will be able to show you not only the properties that they have on their books, but can also try to find you a property that fulfils your requirements even if it is listed with other agents.

Be aware that in Portugal it is common practice that the estate agent’s commission is paid by the vendor, but that does not stop you from choosing an estate agent who will work with you and assist you in finding the property that ticks all your boxes.