What You Should Know

• Costco’s home insurance is CONNECT, an insurance policy by American Family insurance
• While Costco home insurance received stellar ratings, its consumer reviews are below average
• Homeowners that make the switch to Costco home insurance can save around $584 in savings

It's important to learn more about Costco home insurance in our Costco home insurance review to see if Costco is the right insurance provider for you. Costco has a large variety of discounts available, but eligibility varies from state-to-state.

If you are unfamiliar with home insurance policies, make sure you also read our practical guide for understanding homeowners insurance before purchasing Costco home insurance.

Want to jump right into comparing home insurance rates? Enter your ZIP code to receive a free homeowners insurance quote today.

What You Need to Know About Costco Home Insurance

Since 1994, Costco has been a membership-only warehouse dedicated to providing its members with quality products and affordable prices. With over 828 warehouses ranging from 80,000 to 230,000 square feet in size, $192 billion in annual revenue, and 105.5 million members and counting, Costco is the second largest retailer in the world behind Wal-Mart.

Costco home insurance is brought to its members through CONNECT, which is powered by American Family Insurance, or AmFam. The company was formerly known as Ameriprise insurance.

CONNECT home insurance plans are flexible and can either be made in one large payment, or in smaller monthly installments.

How much does Costco home insurance cost?

Costco homeowners insurance offers some of the most competitive home insurance policies on the market. However, since rates and benefits can vary by city, member discounts are one of the great ways Costco helps members across the country save on monthly expenses.

Costco Home Insurance Discounts

Let’s face it, most of us are overpaying for homeowners insurance. With CONNECT, your Costco membership can unlock exciting discounts that can help you save money on your homeowners insurance premium. Costco offers a variety of benefits for its homeowners.

Age of Home Discount

Costco members that would like to build a new home, buy a new home, or have their heart set on a newly renovated condominium, can receive an Age of Home discount. The newer the home, the bigger the discount Costco can allocate.

Claims Free Discount

Homeowners that have not filed a claim in the last five years can qualify for a claims free discount. However, it’s important to note that this discount is only available in select states.

Food Spoilage Protection

During an unexpected power outage, there is a chance that the food in your refrigerator and freezer may end up spoiling and going to waste. If this happens to you, Costco home insurance can cover you during instances like these. They can replace up to $500 worth of groceries. Even better, no deductible is required to enjoy this membership benefit.

Glass Repair Reimbursement

Have one or more of the windows in your home broken? If so, Costco can reimburse its members for the repair costs and cover up to $1,000 per incident (with a two-claims limit for a 12-month period).

Home Lockout Savings

Locked out of your home? No problem. Costco’s home lockout savings program is exclusively available to its Executive members only. This service is available 24/7 and it can cover up to $100 per incident.

Lock Replacement Expense Protection

If your home has been broken into, Costco can help cover the cost of your lock replacement services with up to $100.

Protective Devices Discount

Do you have smoke alarms, deadbolt locks, security alarms, security systems, a sprinkler system, or fire extinguishers in your residence? If so, Costco’s Protective Devices discount can reward you with a discount simply for taking the necessary safety precautions in your home.

Renovation Discount

Costco offers Renovation discounts to its members who are also homeowners.

• Electrical renovation - If your home’s electrical system has not been renovated in at least nine months, Costco can provide you with a discount to have it fixed.
• Heating and cooling renovation - If your home’s heating and cooling system have been replaced within the last nine years, Costco can provide its members with a discount to have it updated.
• Plumbing renovation - If your home’s entire plumbing system has been removed or replaced within the last seven years, Costco can provide you with a discount.
• Roof replacement - If your roof has been replaced within the last nine years, you can receive a discount to have it removed.

Eligibility and available for this discount may vary per state. In addition, it is required for the work to be completed by a licensed contractor and valid proof of repair must be provided to your insurance provider.

Costco Home Insurance Savings

Today, homeowners insurance can be pricey. According to USAA, the average homeowners insurance premium is $1,249 per year. Costco members, on the other hand, can save an average of $583.60 in savings. While savings is one of the company’s strengths, one of the areas that Costco’s CONNECT doesn’t appear to perform well in is its customer service.

Mixed Reviews and Ratings

A.M. Best gave Costco’s CONNECT homeowners insurance an A rating for its financial strength, stability and soundness of operating performance. The Better Business rated Costco’s CONNECT with an A+.

However, the National Association of Insurance Commissioners (NAIC) rated Costco home insurance a 6.30, which is an indication of a large volume of customer complaints. Just one look at Costco’s home insurance reviews and you can see that its customers are not too thrilled with the level of customer service they have been receiving.

A simple search for Costco home insurance on Reddit can generate a series of disgruntled customers. Although some of the negative feedback can be attributed to CONNECT members’ limited access to discounts, most of the concerns listed are due to subpar customer service.

If stellar reviews and extraordinary customer service is one of your must-haves in a home insurance company, Costco CONNECT’s reputation may be seen as a red flag.

Costco Home Insurance and Third-Party Data

If you are a stickler about who has access to your personal information, it’s important for you to have an idea of how CONNECT works. Since it is a third-party company, Costco must share your information with other companies, such as American Family insurance, to confirm your eligibility.

If you would prefer to do business with a company that limits how many people can access your most confidential information, it might be best to go with an insurance company that is not offered through a third-party company, but instead, is provided directly by the company.

Filing a Costco Home Insurance Claim

Are you looking to file a Costco home insurance claim? If so, there are two ways for a Costco member to file a claim with CONNECT.

1. Login to your account and file a claim online.
2. Call the CONNECT claims number and file a report with an associate.

No matter which option you choose, it’s critical that you have your policy number, loss details, a police report (if applicable), and photos of the damage at hand.

Is Costco home insurance right for you?

For only $60-$120 a year, a Costco membership can potentially offer its members the affordable home insurance rates they have been looking for. With your CONNECT login, also known as your Ameriprise insurance login, you can explore all of the services and discounts that are included in your account and you can also file a claim, if necessary.

While great ratings and even greater savings may sound appealing to you, one of the not-so-appealing characteristics of home insurance from Costco is the reputation its customer service department has received. With only 2,400 agents, the company usually has a limited number of local insurance agents available. If you rely on great customer service and see yourself calling the Costco insurance phone number multiple times a day, Costco may not be the best home insurance option for you.

Are you sold on the concept of Costco home insurance or would you like to do a little more research? Enter your ZIP code to compare rates today.