Natural catastrophe insurance of Iceland
Considerable variation in damage assessments in Grindavík
29th February 2024
Inspections and assessments of damage to most residential and commercial properties in Grindavík has been completed, where damage has been reported to NTÍ. Currently assessors are working on cost estimates and preparation of appraisals, but it is expected that the first appraisals for less damaged properties will be sent to owners for presentation at the end of next week. In total, almost thirty assessors from four engineering firms have carried out damage assessment for NTÍ, as well as three independent and specialized assessors.
Relatively minor damage to properties further away from the fissure areas
During NTÍ's review of the cases that have already been assessed and evaluated, it has become clear that the extent of damage to real estate is generally insignificant in the areas that are further away from the fissures and faults that have appeared in the town. Audunn Elíson, damage assessment project manager at Verkís, says that the nature of the damage was somewhat surprising. "Considering the large earthquakes that have occurred in Grindavík in the last few months, we have been quite surprised at how little damage there is in general to properties in the town, with the exception of those next to fissures and fault lines. Most properties outside of fracture zones and faults are relatively undamaged. However, we have seen that houses that share a lot border can be almost undamaged on one lot, but a complete write off on the other."
Quite a few residential buildings that are standing on top of cracks and faults are so badly damaged that the repair costs are estimated to be higher than the insurance amount. NTÍ has informed the owners of those houses about the results of the assessment and many of the damages have been paid as total damages to the victims, with the exception of the costs of demolition and disposal in accordance with the law.
Some field inspections may need to be repeated
Jón Örvar Bjarnason, head of NTÍ's insurance division, says that the assessors will go back to assess if further damage has occurred to the properties that are standing on or near fissures, it is very likely that damage has increased since the first inspection was carried out before the end of last year. If it turns out that damage has increased, the appraisals will be updated before they are sent to the owners for presentation. "In addition, all owners can report additional damage to their property to NTÍ either before or after they have received an assessment," says Jón Örvar. The deadline for reporting additional damage to NTÍ is one year from when the damage is discovered.