Auckland Council is expected to approve a buyout package for about 700 properties damaged in extreme weather events.

Our newsroom understands the measure will cost well in excess of $1 billion and could be paid for by extra borrowing and rates rises.

Mayor Wayne Brown and Finance Minister Grant Robertson sealed the deal on Tuesday and its understood the deal will have a 50/50 cost sharing approach like the Hawke's Bay deal.

It's unclear how the council will value properties, whether it will apply a discount and how it will treat insured and uninsured properties.

The council may also cap the voluntary buy outs, which could affect clifftop Auckland homes, some of which are worth more than $10m.

John Goddard is an Insurance Barrister who was part of the claims resolution service after the Canterbury earthquakes, he joined Kerre Woodham.

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