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Earthquake Commission Minister Megan Woods said yesterday she had asked Treasury officials for urgent advice on the issue.
She said that, as of this week, $170million had been spent re-repairing homes, with another $100million going into re-settling homes on which the initial repairs were cash settled.
"This is far beyond what the previous government told the public the issue would cost," she said.
"In opposition, we warned the government they were not acting fast enough on the issue of botched repairs."
The money covers additional fixes on homes that were not repaired the first time or where the full extent of quake damage was originally missed.
The announcement comes as the Government shakes up the commission in a bid to clear out the last remaining 2600 claims from the 2011 quake.
EQC chairman Sir Maarten Wevers suddenly resigned earlier this year after saying it was clear the "minister has no confidence in the board and staff of the commission".
Dame Annette King has been appointed interim chairwoman with a mandate to speed up the resolution of outstanding claims and a review is under way.
"Blow-outs like this are why I have taken action to send in an independent ministerial adviser reporting directly to me to speed up the settling of EQC claims," Dr Woods said