It's much worse than that. Iceland sits on top of a "hot spot," volcanic plume similar to the one that powers Yellowstone. It's also directly on top of the boundary of the North American and Eurasian tectonic plates. When it comes to scary real estate, Iceland would be the last place on Earth where I'd consider living.
I visited there in 2017, and I would definitely live there.
Worse, the magma has Fluorine in abundance.