With Brisbane on high security alert for the G20 leaders’ summit on November 15-16, strata managers in the CBD and South Bank precincts have been warned their insurance policies may not cover terrorist attacks.

Strata Community Australia (SCA) Queensland President Simon Barnard says terrorism exclusions may affect hundreds of residential strata schemes in the area.

He says bodies corporate in the G20 restricted and declared zones should closely examine their insurance provisions.

“Due to the scale of the potential losses involved in a terrorist attack, various strata insurers of residential properties have introduced specific terrorism exclusions into their policies,” he said.

The principal venue for the leaders’ summit is the Brisbane Convention & Exhibition Centre, which will host 4000 delegates and 3000 media representatives.

Mr Barnard says although it is “extremely unlikely”, a potential terrorist attack cannot be dismissed.

“We have to consider the possibility,” he told insuranceNEWS.com.au. “Our message is strata managers should confer with their insurer or broker to be certain about the coverage they have and if necessary to consider taking out coverage for terrorist acts.”

Mr Barnard says the SCA – the peak industry body for the strata and community title sector – does not provide insurance advice to its members, which include insurance brokers.

“Our aim is to bring the issue of terrorism exclusion to the fore, to make our members aware and to urge them to have that conversation with their broker about what their insurance does and does not cover.”

Strata specialist Body Corporate Brokers’ Queensland Manager Warren Fenton says he has received several enquiries from strata managers following the SCA’s warnings.

“A few have taken cover for a couple of weeks for about $2000,” Mr Fenton told insuranceNEWS.com.au. “Insurers have been quite flexible.”

For commercial buildings the Federal Government provides terrorism cover under a scheme provided by the Australian Reinsurance Pool Corporation.