The Hobbit: Insurance claim desolates Smaug's hoard

Daniel Wood
3 May 2014
The Hobbit: Insurance claim desolates Smaug's hoard
The Hobbit: How much do Allianz estimate insurers will have to payout for 'Desolation of Smaug'

Last year Allianz calculated the total insurance cost of the events of Peter Jackson's first Hobbit film 'An Unexpected Journey', they said that the total liability costs from the first Hobbit movie were 3,108,700 euros and total property damage added up to 320 million Euros.

Now Allianz are back to take on an insurance claim for Jackson's second Hobbit film, 'Desolation of Smaug' and this time they mean business. Well, of course they mean business it's literally business. So how much will the events of the 'Desolation of Smaug' cost an insurer?

Well, this time they've turned their attention towards Erebor itself, the fortress in the mountain that the dwarves are trying to retake from the vicious and intelligent dragon Smaug. Naturally the fortress has fallen into a state of disrepair since it's been 'ruled' by Smaug. So how much will insurers pay out to fix it?

Determining the total loss for the cathedral and fortress after the fire
Clean-up and demolition costs for the cathedral or fortress which were destroyed completely

· Disposal of 300,000 tons of stone and other materials = EUR 57,000,000

· Demolition costs for 30,000 manual labourers working 8 hours a day for 7 days estimated at EUR 39.00/ h = EUR 65,520,000

· Total cost of clean-up and demolition = EUR 122, 520,000

Replanting of five trees (20 metre pines)

· According to internet research, approx EUR40 per tree plus costs for the gardener whose own costs are EUR 40/h for 10 hours)

· Total cost for replanting = EUR 600

Restoration costs for the cathedral or fortress

· Restoration costs for the fortress, which measures 145 metres in length, 85 meters in width and 45 metres in height, were assessed by experts that we commissioned to be EUR 199,000,000 for a standard fortress

· EUR 1.5million deducted for stone fortresses hewn into mountains in the event of fire, burst pipes, storm/hail and damage caused by natural hazards

· Total restoration costs for the fortress = EUR 197,500,000

Evacuation of golden treasure

· Salvage costs for the golden treasure underneath the debris were calculated on a notional basis; 10 days with 100 labourers working 10 hours every day = 10,000 hours x EUR 39 = EUR 390,000

So there you have it. The imaginary claim to fix Erebor adds up to over 320 million Euros, which when added to 'An Unexpected Journey's claim makes a total of 643,108,700 million Euros in total. I can't wait to see what happens in the newly title changed 'There and Back Again', now called 'The Battle of Five Armies'

Daniel Wood is a long-time 'Lord of the Rings' and 'The Hobbit' fan after his dad read him both books as bedtime stories as a child. Of course back then he didn't understand a word he was hearing, so he's grateful they made films. Follow Daniel Wood on Twitter.

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