Owners of properties on-sold since the Canterbury earthquakes that had damage costing more than the Earthquake Commission cap can now apply for Government payment for repairs.
Some properties that had damage and cost more than the cap were unable to recover the additional amount from private insurers.
Earthquake Commission Minister Grant Robertson said the new policy allows the commission to make payments "for the last group of people affected by botched or missed repairs following the Canterbury earthquakes".
It is estimated 1000 homes, with about $300 million in damage, could qualify for payments.
Greater Christchurch Regeneration Minister Megan Woods said the "on-sold over-cap issue has been an absolute nightmare for some Cantabrians".
"They have been trapped with homes that have gone over the $100,000 EQC cap after they bought them, with no access to recourse from insurance."