Fire insurance value

It is important that fire insurance value reflects the true value of the building. If something has been added to the building or major renovations have been carried out, there is a reason to request a revaluation.

Fire insurance value

Fire insurance value covers the material value of the building (for example timber, concrete, steel) and the cost of construction, less depreciation due to age, wear and tear and condition. Fire insurance value never fully depreciated, but during the first 60 years, the fire insurance value is depreciated to some extent. It is assumed that the building has received normal maintenance. In addition, the cost of removing fire debris is included. Household effects or other movable assets are not included in the fire insurance value.

If a building undergoes major renovations and parts of it are renewed, there may be a reason to revise the depreciation year of the building. With that depreciations will be reversed to some extent. After that the parts in question will no longer be considered to be from the year the building was built (for example 1963) but instead from the time of their renewal (for example 2022).

Examples of additions to fire insurance value

• Extension to a house.

• Deck walls / windbreak.

• Sun deck.

• Balcony closing.

• Hot tub.

Examples of renovations

• Replacement of pipes and/or electrical wiring.

• New furnishings (permanently fixed cabinets).

• Replacement of insulation or siding.

• Everything that exceeds normal maintenance.

Submitting a request for revaluation of fire insurance value

You submit the application through island.is with information on the property id and land id.

Supporting documents

• A clear description of the renovations or extension, the materials used and the year in which the work was carried out.

• A description of everything that is newer than the year of construction, or the year in which the fire insurance value is known to have been revaluated.

• Clear photos of everything you wish to submit.

• A written authorisation if the applicant is someone other than the owner.

Once you have submitted your application, a confirmation of receipt will be displayed on the screen. If some information is missing you will be contacted by email and if you wish to add some information (for example more photos) you can email it to brunabotamat@hms.is.

Revaluation of fire insurance value is free of charge.

Handling of request

You will be notified of the new fire insurance value by letter to My pages on island.is . The processing time is normally 5-10 business days.

When the fire insurance value has been revaluated it will be automatically updated with your insurance company and your fire insurance will be updated accordingly.