The move to a property-based emergency services funding regime in NSW on July 1 will level the playing field for owners’ corporations, according to Strata Community Insurance MD Paul Keating.

State fire and emergency services are currently funded via a levy on residential and commercial property insurance.

Mr Keating says owners’ corporations are unfairly burdened because they are legally required to insure buildings under a damage policy with approved insurers for full repair and replacement costs.

“Other forms of property insurance are voluntary, with owners choosing whether to insure and to what level,” he said.

“The compulsory nature of strata insurance therefore results in owners’ corporations paying a disproportionate share under the old system.

“Owners’ corporations will be the ultimate winners with these changes, as a broader property-based levy will extend the funding base and lower costs for strata owners.”

State Treasurer Dominic Perrottet says the new system will cut the cost of insurance by $938 million next financial year, and help address high levels of underinsurance.