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3.5 NerdWallet rating Costco homeowners insurance policies come from Connect, an American Family company. Coverage options More than average Discounts Great set of discounts NAIC complaints More than expected 3.5 NerdWallet rating Costco homeowners insurance policies come from Connect, an American Family company. Discounts Great set of discounts NAIC complaints More than expected
Connect
Connect
About Costco home insurance from Connect
3.5
NerdWallet rating
Costco home insurance comes from a partner company called Connect, which is part of the American Family Insurance group. Connect homeowners insurance earned 3.5 out of 5 stars for overall performance. Anyone can buy Connect homeowners insurance, but Costco members get a special discount and may also be eligible for a couple of extra perks such as coverage for locksmith service if you’re locked out of your home.
» MORE: The best homeowners insurance companies
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Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines that ensure fairness and accuracy in order to help you choose the financial products that work best for you. Our home insurance star ratings are based on dozens of data points, including:
Financial strength ratings
Consumer complaints
Coverage and discounts
Where Costco home insurance stands out
Benefits for Costco members. Depending on your level of membership and where you live, you could be eligible for a premium discount and some small coverage perks.
Replacement cost coverage for personal belongings in most states. If a fire destroys the sofa you’ve had for 8 years, Connect will generally pay enough for you to replace it with a brand-new one. Without replacement cost coverage, you’d receive the actual cash value of your sofa, which would reflect depreciation. Many companies charge extra for replacement cost coverage.
Where Costco home insurance falls short
Consumer complaints. Costco’s insurance provider, Connect, draws more consumer complaints than expected for a company of its size.
Coverage
You can customize your homeowners policy with numerous add-ons, but below are the types of coverage that generally come standard:
Type of coverage | What it does |
|---|---|
Dwelling | Pays to repair or rebuild the structure of your home. |
Other structures | Covers damage to unattached structures such as sheds or fences. |
Personal property | Pays to repair or replace personal belongings such as furniture or clothing. |
Loss of use | Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs. |
Personal liability | Covers legal expenses and damages if you're responsible for injuries to other people or their property. |
Medical payments | Covers injuries to guests in your home, regardless of fault. |
For more details, see What Does Homeowners Insurance Cover?
Depending on your state, a Costco homeowners insurance policy from Connect may also include coverage for:
Identity theft. This pays as much as $5,000 to help you recover if your identity is stolen. Learn more about identity theft insurance.
Credit card or check fraud. This covers losses due to check fraud or a stolen or hacked credit card, with no deductible.
Food spoilage. If your food spoils due to a power outage, Connect will replace up to $500 worth of groceries with no deductible.
In most states, your policy will also include replacement cost coverage for your personal belongings. This means if your stuff is stolen or destroyed, the company will pay enough for you to replace it with brand-new items. Without replacement cost coverage, you could end up getting less money for older items due to depreciation.
Costco Executive members may receive additional benefits, including:
Glass repair reimbursem*nt, which will pay up to $1,000, twice a year, to fix broken windows.
Home lockout assistance, which covers up to $100 for locksmith services, twice a year, if you’re locked out of your home.
Connect also offers several types of optional coverage that you may be able to add to its homeowners policies, depending on where you live.
Earthquake: Covers damage to your home and belongings from an earthquake.
Mine subsidence: Pays for damage to a building located over a mine. This includes settling, foundation cracks or the collapse of your house.
Backup and overflow: Pays for damage from a sump pump failure or sewer backup.
Personal injury: Covers claims against you for issues such as slander, libel and wrongful eviction.
Service line: Pays for damage to utility lines or pipes that connect your home to the street.
Scheduled personal property: Adds extra coverage for valuables such as jewelry, musical instruments or fine art. You may need to have a professional do an appraisal to assess each item’s value.
Did you know...
Most homeowners insurance companies, including Connect, will not cover damage to your home from flooding. If you live in an at-risk area, you may want to consider buying separate flood insurance.
» MORE: How much homeowners insurance do you need?
Discounts
Costco members get an exclusive discount on Connect home insurance in most states. You may also be able to save on your premium by:
Insuring a newly built home.
Filing no claims within the past five years.
Adding protective devices like smoke alarms, deadbolt locks, security alarms, a sprinkler system or fire extinguishers.
Bundling multiple Connect policies.
Replacing your roof or renovating your plumbing, electrical or heating and cooling systems.
🤓Nerdy Tip
Another way to lower your premium is to raise your homeowners insurance deductible, the amount that will be subtracted from your payout if you ever file a claim. Just be sure to choose an amount you’d feel comfortable covering out of your own pocket.
Consumer complaints
Connect had more than the expected number of complaints to state regulators relative to its size for home insurance, according to three years’ worth of data from the National Association of Insurance Commissioners.
» MORE: 6 essential terms to understand in your homeowners policy
Consumer experience
Website: Costco’s website has relatively little information about its insurance policies, but the Connect website for Costco members offers more details, plus online quotes and claim filing. You can use your online account to make payments, update your personal information and view policy details.
Claims: You can file a homeowners claim online or by calling Connect at 800-872-5246. For advice, see how to file a home insurance claim.
Customer service: Costco members can call 877-658-1936 or 888-404-5365 for customer assistance. Alternatively, they can reach out to [emailprotected].
Executive members who are locked out of their home can call 866-641-5443.
» MORE: The average cost of homeowners insurance
The bottom line
If you’re already a Costco member, it may be worth getting a quote to see whether you can save money on your home insurance by switching. But you don’t need to be a Costco member to get Connect homeowners insurance — and the discount may not be worth the $60 Costco membership fee if you won’t take advantage of any other Costco member benefits.
Current Product
NerdWallet rating 3.5/5 | NerdWallet rating 4.0/5 | NerdWallet rating 4.5/5 |
Complaints to NAIC More than expected | Complaints to NAIC Fewer than expected | Complaints to NAIC Fewer than expected |
Coverage More than average | Coverage About average | Coverage More than average |
Discounts Great set of discounts | Discounts Average set of discounts | Discounts Average set of discounts |
Bottom line Costco homeowners insurance policies come from Connect, an American Family company. | Bottom line A solid option that's available in most states. | Bottom line Well-established insurer with a lengthy list of coverage options. |
Compare Quotes | Compare Quotes | Compare Quotes |
Other insurance companies to consider
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Frequently asked questions
What other types of insurance are available?
Connect offers a variety of other policy types, including condo, renters, umbrella, boat and auto insurance. You can learn more by reading our Connect auto insurance review.
Who is Costco’s insurance provider?
Costco home insurance is provided by Connect, part of the American Family Insurance group. Learn more about American Family.
Is Costco home insurance good?
NerdWallet has rated Connect, Costco’s home insurance provider, with 3.5 stars out of five. The company has a solid slate of coverage options and discounts, but its high volume of consumer complaints is a weak point.
