The rise in home values has spurred on an increase to the cap for Earthquake Commission (EQC) claims.
The cap for properties affected by a natural disaster is jumping up to $50,000 from Monday.
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EQC chief executive Sid Miller said its annual levy is increasing by $60 to pay for it.
Miller said homeowners need to contact private insurers to determine individual cost changes.
EQC home contents is also being canned as part of the changes.
"What will actually happen as of tomorrow [Monday] is there will be a transition period for these items coming into play," Miller told Newshub on Sunday.
"And that transition is really based on when your policy renews, so it will occur over a year."
Miller said the value of houses was continuing to rise.
"That value really links to the cap," he said. "We've got to constantly be looking at the cap and making sure we're staying current in the environment which it's operating."
Former EQC boss David Middleton told Newshub last month that the increase from $100,000 to $150,000 was not enough
"[The] EQC cap of $100,000 which was set in 1993 to achieve the purpose that was described for it then, which was to rebuild an ordinary New Zealand home - that needs to be $400,000 now," he said.
EQC aims to offer support to homeowners hit by earthquakes and is available to anyone with fire insurance on their home.