The Skansinn area is a historic site that dates to 1586 when it was built to protect the Danish royal store from English sailors and merchants. Over the following centuries, it was used to by the Danish military to defend the Westman Islands following the Turkish invasion of 1627, when pirates abducted 242 islanders.

Even though armaments were discontinued in 1870–1880, Skansinn remained the main flag and maritime station, and ships were monitored from there. During WWII, the area was used by the British military as a base on the Westman Islands.

Now, the area is a historic place where visitors can learn about fascinating Westman Island history and is home to the all-black Stave church. This church was given to Iceland by Norway to celebrate their 1000th year of being a Christian nation.

Across the street from this area is a lovely hike on top of the lava that flowed from the 1973 volcanic eruption. As you walk around on the path, pay attention to any signs you see. They mark where buildings are that had been buried under lava during the eruption