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Costco Homeowners Insurance Review (2022)

Costco offers affordable, comprehensive home insurance coverage in most of the U.S. through its underwriter, Connect Insurance.

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In this Review: Our Take | Pros & Cons | Coverage | Cost | Discounts | Customer Reviews | Costco vs. The Competition | FAQs

Purchasing a home insurance policy can save you a lot of money in the long run. When an unexpected disaster or other event occurs, your home insurance policy will safeguard your investment’s interior and exterior, along with your personal belongings. Most basic policies even protect you from paying for medical expenses and legal fees out of pocket if a guest gets injured on your property.

Choosing the right homeowners insurance provider can be tricky since different companies offer different coverage. In any case, you want to work with a reputable company with a proven track record.

In this in-depth Costco home insurance review, the This Old House Reviews Team helps you discover if this is the right provider for your needs. However, to find the coverage you need at the lowest price, we recommend entering your ZIP code in the tool below to compare quotes from multiple providers:

Our Take on Costco Home Insurance

The wholesaler Costco offers homeowners insurance through its underwriting partner, Connect insurance. Connect was formerly Ameriprise, before it was purchased by American Family Home.

Through Connect, Costco offers comprehensive home insurance coverage with an extensive range of endorsements at a very low, affordable rate.

However, Costco home insurance is only available in 44 states and the District of Columbia. It offers few discounts, does not underwrite its own policies—meaning that you have to contact a different company for customer service—and does not have 24/7 customer service by phone.

We give Costco home insurance a score of 78.25 out of 100.

Pros & Cons of Costco Homeowners Insurance

Compare the advantages and disadvantages of Costco home insurance:

✔ Very low rates
✔ Available in 44 states

✘ Does not underwrite its own policies
✘ Does not have 24/7 customer service by phone
✘ Not available in six states (MI, ND, WY, LA, ME, WV)


Costco offers all industry-standard coverage through its basic policy.

Costco Home Insurance Coverage

Type Description
Type Description
Dwelling + other structures Covers the cost to rebuild or repair your dwelling and detached structures (such as garages and sheds) in the event of a covered loss
Personal property Covers your personal property in case of a covered loss, including furniture, clothes, appliances, and electronics
Liability Covers legal fees in the event you are sued by a guest for personal property damage or injury
Loss of use/additional living expenses Covers the cost to live outside your home when it is temporarily uninhabitable due to a covered loss
Medical payments to others Covers the medical expenses associated with a guest getting injured on your property

Costco offers several endorsements to help you customize your homeowners insurance coverage.

  • Personal injury
  • Water backup and sump pump overflow
  • Scheduled personal property, including jewelry, fine art, and musical instruments

How Much Does Costco Home Insurance Cost?

The exact cost of Costco homeowners insurance depends on many factors, including your property value, size, the materials it was constructed with, where you live, the coverage limits you select, the insurance deductible you choose, and more.

We retrieved the cost from a customer representative for a single-family, 2,200-square-foot home in Raleigh, North Carolina.

The monthly cost of $73.50 is well below the national monthly average for home insurance.


Type of Coverage Amount of Coverage
Type of Coverage Amount of Coverage
Dwelling $246,000
Other structures $24,600
Personal property $172,200
Loss of use/Additional living expenses $49,200
Liability $300,000
Medical payments to others $5,000
Monthly Cost $73.50

How to Get Discounts With Costco Home Insurance

You can also lower your Costco home insurance premiums by qualifying for one of their discounts:

Costco Home Insurance Discounts

Discount Description
Discount Description
Multi-policy Discount for bundling several Ameriprise policies
Age of home Discount for newly built homes
Claim-free Discount for not having filed a claim in the last five years
Tenure Discount for being a loyal Ameriprise customer for a specified period of time
Home safety Discount for having installed protective devices like security systems and smoke alarms
Renovation Discount for recently replaced components like roof, electrical, plumbing, and more

Customer Reviews of Costco Insurance

Costco does not have a Better Business Bureau page for its home insurance, as its coverage is provided through Connect Insurance. The company is not accredited by the organization and holds an A+ rating.

See what some customers had to say about their experience:

Brian C. said:

“I’ve had several claims since I’ve been with [Costco] and they handled it perfectly so far with all of them. Of course none of the claims were my fault but they resolved the cases with professionalism and courtesy... I initially chose [Costco] for their low premiums. But so far have received better service than any other insurance companies I’ve been with.”

William L. said:

“What this company does is immoral and should be illegal. They sell you a reasonable policy for a reasonable price through Costco and then change your coverage for the worse and up your premium in hopes that you’ll either not notice or will change insurers before making a claim, thus allowing them to pocket an easy one-year premium. Please, whatever you do, avoid this company like the plague! They ended up costing us $15k+ with their bait-and-switch scheme.”

Costco vs. The Competition

See how Costco stacks up against some of its top competitors on key metrics.


Provider Get A Quote State Availability 24/7 Claims Service by Phone Mobile App
Provider Get A Quote State Availability 24/7 Claims Service by Phone Mobile App
Costco - 44 X X
Lemonade Get My Quote 27*
Amica® - 48 (not available in AK and HI)

*Lemonade home insurance is available in AZ, AR, CA, CO, CT, GA, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NM, NY, OH, OK, OR, PA, RI, TN, TX, VA, WA, WI

Costco Home Insurance FAQs

Does Costco have home insurance?

Costco offers home insurance through Connect, formerly Ameriprise. All industry-standard coverage is available in its basic policy, and many optional endorsements are available to help you customize your coverage.

Is Costco insurance cheaper than the competition?

This depends on what you are comparing Costco insurance to, but we have found that Costco offers the cheapest home insurance rates of all the companies we have evaluated at $73.50 per month.

Is Ameriprise owned by Costco?

No. Ameriprise was rebranded as Connect, after it was bought by American Family Home. Costco offers home insurance through a partnership with Connect but does not own it.

Is Costco cheaper than Geico?

In our home insurance findings, Costco is cheaper than Geico, which charges $116.16 per month, while Costco has a more affordable rate of $73.50 per month.

For more information, visit our Cheapest Homeowners Insurance page.

Is Costco Home Insurance Best for You?

Costco home insurance, offered through Connect, is comprehensive and offers a wide range of endorsements and discounts at an extremely low, affordable rate.

However, it does not underwrite its own policies, meaning that customers have to file and track claims and handle customer service requests through Connect. This can be frustrating for customers, as it adds a third-party into the mix.

Overall, we give Costco a score of 78.25 out of 100.

To find the best homeowners insurance provider for your individual needs, we always recommend getting quotes from multiple home insurance companies that serve your area:

Company Information

  • Company name: Costco
  • Company type: Public
  • CEO: W. Craig Jelinek
  • Year founded: 1983
  • Headquarters: 999 Lake Drive, Issaquah, WA 98027
  • State availability: 44 States excluding MI, ND, WY, LA, ME, WV
  • BBB rating: A+

Our Methodology

The This Old House Reviews Team values accuracy, transparency, and trust. With that in mind, we created a thorough, objective rating system to score each home insurance company based on the following six factors:

  • Coverage (30)
  • State availability (7.5)
  • Customer service (15)
  • Technology (12.5)
  • Reputation (20)
  • Additional benefits (15)

Our Reviews Team has a full-time researcher who collects and regularly updates data points from every company to help us compare them on key factors such as coverage, service, and dependability. Read more on our methodology here.

To share feedback or ask a question about this article, send a note to our Reviews Team at