As property fire insurance is mandatory, all home- and property owners need to insure against fire, whether the property is currently under construction or complete. This includes all property types, including residential, garages, property intended for retail and industry, outhouses, summer homes or stables. When property is purchased, the realtor sends a notice about a change of owners to the Icelandic Property Registry, otherwise the owner needs to do so him- or herself.
The insurance amount is based on the fire assessment by the Icelandic real estate registry. If you think the assessment is incorrect or inaccurate, perhaps due to changes made to the real estate after the last assessment was conducted, you can order a re-assessment from the registry of real estate.