Labour says hundreds of red zone homeowners in Christchurch will be left out of pocket, because the Government broke its word about factoring home improvements into valuations.
The Government is offering to purchase properties on unstable land at the 2007 valuation.
Waimakariri MP Clayton Cosgrove says Earthquake Recovery Minister Gerry Brownlee told owners to keep receipts for work on bathrooms and kitchens, so they could be taken into account.
But he says it turns out that only spending that increased the overall floor area will be considered, ruling out most internal improvements.
Mr Brownlee says 2007 valuations were struck at the height of the property boom and the Government's offer is extremely fair.
But he says it may not suit everyone and property owners can still choose to deal directly with their insurer.