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.
Table of Contents
- Our Take on Costco Home Insurance
- Pros & Cons
- Customer Reviews
- Costco vs. The Competition
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
Compare the advantages and disadvantages of Costco home insurance.
Costco Home Insurance Pros & Cons
|Very low rates||Does not underwrite its own policies|
|Available in 44 states||Does not have 24/7 customer service by phone|
|Not available in six states|
Costco offers all industry-standard coverage through its basic policy.
Costco Home Insurance Coverage
|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
Costco home insurance is available in 44 states and the District of Columbia.
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|
|Loss of use/Additional living expenses||$49,200|
|Medical payments to others||$5,000|
You can also lower your Costco home insurance premiums by qualifying for one of their discounts:
Costco Home Insurance Discounts
|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.
|State Availability||44||27*||48 (not available in AK and HI)|
|Years in Business||38||5||113|
|24/7 Claims Service by Phone||X||✓||✓|
|Protective Devices/Safety Features Discount||✓||✓||✓|
*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.
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 name: Costco
- Company type: Public
- CEO: W. Craig Jelinek
- Year founded: 1983
- Headquarters: 999 Lake Drive, Issaquah, WA 98027
- State availability: 50
- BBB rating: A+
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 email@example.com.