The government's natural disaster insurance scheme will raise its cap for claims but no longer cover home contents under a newly proposed law.

Earthquake Commission Minister Megan Woods on Tuesday announced cabinet had agreed to revamp the Earthquake Commission Act for future events.

The EQC scheme effectively works like a government-owned insurer, covering damage from natural disasters up to a certain value for those who already have private insurance.

Under the changes, the EQC will cover damage up to $150,000 - plus GST - up from the current $100,000 - but it will no longer cover the contents of homes.

The change would also see the scheme take claims for up to two years after disasters, rather than the current three months.
"The changes simplify and speed up the claims process, and resolve issues with the EQC Act that have previously been identified by the ombudsman and the Canterbury Earthquakes Royal Commission," Dr Woods said.

"Government has talked to the insurers and indication is that that private insurance cover for contents will continue to be available at a reasonable cost."

It was expected the changes would take effect in July, 2019, subject to the law change passing through parliament this year. The announcement comes as the government shakes up the commission in a bid to clear out the last remaining 2600 claims from the deadly 2011 Christchurch quake.

"These are changes that can be made now without having to wait for the outcome of the upcoming inquiry," Dr Woods said.
EQC chairman Sir Maarten Wevers suddenly resigned last month 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 chair with a mandate to speed up the resolution of outstanding claims and a review is under way.