Following seismic activity and a magma dike opening crevasses in Grindavík, Iceland, Hulda Ragnheiður Árnadóttir, director of the Natural Catastrophe Insurance of Iceland, has said the damage to homes and infrastructure could amount to ISK 10 billion ($71.4 million).
As per the Iceland Review (IR), the seismic events in Grindavík began in late October, with earthquakes and land deformation continuing for more than several weeks.
The town has been evacuated since November 10, with land deformation still ongoing at Svartsengi, north of Grindavík.
According to the IR, the Natural Catastrophe Insurance of Iceland has received reports of damage to 230 properties in Grindavík. 140 of them have been inspected thus far, with the remaining 90 anticipated to be inspected by the end of the week.
It is worth noting that all buildings in Iceland are insured against natural disasters and insurance premiums are collected alongside fire insurance.
Hulda Ragnheiður stated the circumstances of the damage are unusual as it occurred over a relatively long period.
She continued, “That’s why it’s difficult to start paying out damages while it hasn’t been decided which areas are suitable for habitation.”
Citing experts, the IR said that Grindavík is at risk of further earthquakes and eruptions in the coming weeks and months, adding that it is still unclear when it will be safe for the town’s 3,600 residents to return home.
Further, in some areas where damage has occurred, the IR said that authorities may decide to ban rebuilding due to ongoing risk.
Hulda Ragnheiður concluded, “I think it’s inevitable that the layout of the town will change in some way. All of the decisions that will be made are in the jurisdiction of the municipality of Grindavík in collaboration with scientists and the government. We will receive the information that comes out of that and process it.”
