On 3 November, Iceland's Civil Protection authorities and the government presented the booklet “Verum viðbúin” (“Be prepared”), which was distributed to homes across the country. The booklet urges people to keep water, food and cash for at least three days and to prepare for power cuts. The Minister of Justice reminded the public that we are each responsible for our own homes. That responsibility also extends to keeping track of the insurance each of us holds.
Under Icelandic law, properties that carry fire insurance are also insured with Natural Catastrophe Insurance of Iceland (Náttúruhamfaratrygging Íslands). That insurance covers damage caused by volcanic eruptions, earthquakes, landslides, avalanches and floods. The deductible, however, is 2% of each loss, with a minimum of ISK 400,000 for a building and ISK 200,000 for household contents.
It is up to each of us to make sure that what is insured is actually compensated if damage occurs. The best way to do so is to keep receipts and invoices for the most important items, photograph them if invoices are not available, and keep the policy terms in a safe place. If damage occurs, it is important to report it as soon as possible, as the right to compensation may be lost if it is reported too late.
If you would like to review your legal position, you can contact us at esl.is.