Fire insurance value is the insurance amount of real properties on which the premiums for statutory fire insurance are based.
The purpose of fire insurance is for a building’s owner to recover losses in case of fire in the building.
The statutory fire insurance only extends to the property, not the home contents, location value or cost of finishing work on-site.
Property owners must insure their home contents specifically if the fire insurance is to cover it. Article 4 of the regulation on the statutory fire insurance of properties No. 809/2000 lists the building factors and other factors that an insurance must always cover and must be considered when assessing fire insurance value.
Public levies for all house owners, based on the fire insurance value, are collected along with the fire insurance premium. These levies include a pre-emptive charge that goes towards the Avalanche Fund, a catastrophe insurance charge that goes towards Iceland Catastrophe Insurance and a fire insurance appraisal charge that goes towards Registers Iceland.