Housing New Zealand will have to pay $10 million in insurance excess following the Canterbury earthquake.
New figures show 3883 of the 6000 state houses in the Christchurch area were damaged in the 7.1magnitude quake on 4 September.
Housing Minister Phil Heatley says four homes will have to be demolished, while 29 are uninhabitable.
Another 350 have structural damage, but the majority of homes have only minor damage, such as cracks.
Mr Heatley says Housing New Zealand is insured for earthquake damage of up to $250 million and the corporation is satisfied that will cover the repairs.
