Costco Home Insurance Review: Service, Cost, & More (2024)

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Reviewed byKathryn Schroeder
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Reviewed byKathryn Schroeder
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Updated: May 22, 2024

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checkmarkVery affordable
checkmarkExcellent financial stability rating
checkmarkProvides quality service


closeNo mobile app
closeOnly available in 28 states


Costco offers homeowners insurance policies through American Family CONNECT. American Family earned a MoneyGeek score of 86 out of 100 based on its customer service, financial stability and strength. Moreover, the company receives fewer customer complaints than the average insurer, according to the National Association of Insurance Commissioners (NAIC).

Costco provides several discount opportunities to its policyholders through CONNECT and multiple add-on coverage options. If you’re looking for more ways to protect your assets, Costco homeowners insurance is a great choice.

Does Costco Have Good Customer Service?

Using an internal scoring system, MoneyGeek gave American Family, which underwrites Costco homeowners insurance policies, an overall rating of 86 out of 100. It’s worth noting that the company provides quality service, meets its financial obligations and receives fewer complaints than the average insurance provider.

Customer Satisfaction Rating

When buying Costco homeowners insurance or making a claim, note that you will interact with American Family instead. American Family received a score of 4.10 out of 5 from MoneyGeek for its customer satisfaction, indicating that it provides great customer service to its Costco member policyholders. Furthermore, J.D. Power’s 2021 U.S. Home Insurance Study placed American Family sixth in its overall customer satisfaction index ranking.

Customer Complaint Index

Another way to measure a company’s customer service is through its complaint index from NAIC. American Family receives consumer complaints about Costco homeowners insurance policies. It has a complaint index of 0.38, which means American Family gets fewer complaints than the average insurer.

Financial Stability Rating

Costo, under American Family CONNECT, received an A or “Excellent” rating from AM Best, an organization that assigns insurance providers a financial strength rating. That means you can rest easy knowing American Family will fulfill its financial obligations.

What To Expect From Costco Homeowners Insurance

Buying homeowners insurance or managing a policy is an easier process if you have detailed information about the company. Below, MoneyGeek outlined important things about purchasing, managing and canceling a Costco homeowners insurance policy.

Getting a quote

You can get a Costco homeowners insurance quote by visiting American Family CONNECT’s website. Another option is to browse the quotes collected by MoneyGeek in the next section.

Customer support

If you have any questions or concerns, you can speak to a customer service representative by calling 1-888-404-5365. Customer service is available Monday through Friday from 7 a.m. to 10 p.m. and Saturday from 8:30 a.m. to 7 p.m.

Filing a claim

You can file a claim 24/7 with Costco through American Family CONNECT’s online portal, via email at or through the claims hotline at 1-888-404-5365.

Canceling your policy

To cancel a Costco homeowners insurance policy, you need to get in touch with your insurance agent or customer service.

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Filing a homeowners insurance claim with Costco can be done in several ways. You can log in to American Family CONNECT’s online portal, call the CONNECT claims number at 1-888-404-5365 or email The claims hotline is available 24 hours a day, 365 days a year.

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Costco sells homeowners insurance through American Family in the states of Arizona, Colorado, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Minnesota, Missouri, Montana, North Carolina, North Dakota, Nebraska, New Mexico, Nevada, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin and Wyoming.

How Much Does Costco Homeowners Insurance Cost?

The average cost of homeowners insurance with $250,000 in dwelling coverage is $1,979 per year. However, this may change depending on your insurance provider.

For example, Costco, through American Family CONNECT, offers the same policy at approximately $802 per year, which is roughly $1,177 cheaper than the national average. Plus, as a Costco member, you can purchase Costco homeowners insurance at a discounted price.

Dwelling Coverage
Annual Premium









How much you pay for homeowners insurance depends on several factors, including your location, dwelling coverage, personal liability coverage and deductible.

While $250,000 is a good starting point for dwelling coverage, it’s still best to determine how much homeowners insurance coverage you need by assessing your home’s value. In addition, you need to choose limits for other coverages, which can affect your monthly premium.

You can use MoneyGeek’s home insurance calculator to estimate your insurance costs depending on your chosen coverage limits.







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Rates updated:

Jun 23, 2024

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Excellent (750-850)
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It’s often expensive to rebuild a home. By choosing a lower coverage limit and a higher deductible, you can save on homeowners insurance. However, doing that may cost you more out of pocket in the long run.

What Discounts Does Costco Offer?

To save on Costco homeowners insurance, you can take advantage of available discounts — one of which is a relatively rare discount opportunity reserved for Costco members.



If you’re a Costco member, you can get a discount when you purchase a Costco homeowners insurance policy just by presenting your Costco membership number.

Age of Home

You are eligible for this discount if your home is newly built or bought.


Depending on your state, you may receive a discount if you haven’t reported a claim in the last five years.

Protective Devices

You can save if you have protective devices installed in your home. These include smoke alarms, deadbolt locks, security alarms, monitored fire and/or security system, sprinkler system and fire extinguishers.


You may save on your premium each year for continuously being insured with the company.

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Bundling policies with the same provider is a great way to lower your insurance costs. If you purchase Costco homeowners insurance along with other insurance policies from American Family CONNECT, you can qualify for a multi-policy discount.

Which Coverage Types Does Costco Offer?

When you purchase a Costco homeowners insurance policy, it includes the standard dwelling, personal property and personal liability coverages. Costco, through American Family CONNECT, also offers nine add-on endorsements and coverages, higher than the industry average of five.

One of its relatively uncommon coverages is lock replacement. It covers the cost of lock replacement if your home is broken into or you were a victim of theft

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Your coverage limits determination depends on the home information you submit to your insurance provider. As such, insurers seldom provide a list of coverage levels to choose from in a homeowners insurance policy. However, MoneyGeek obtained some of the available homeowners insurance coverage limits with Costco:

  • $250,000
  • $500,000
  • $750,000
  • $1,000,000

If you require a different limit, speak to an agent to see if they can accommodate it.

Through CONNECT, Costco offers add-on endorsements for homeowners insurance policies. The table below presents the company’s endorsements and optional coverages so you can understand how they may help you.

Cyber Event/ID Theft

This covers up to $5,000 in costs related to recovering from identity theft.

Lock Replacement

If you experience a break-in or theft, this can help cover the cost of lock replacement for your home.

Scheduled Personal Property

This covers the special, high-value and nonstandard items in your home. These include jewelry, cameras, computers, fine art, musical instruments and equipment, firearms and silverware.

Home Media Equipment

Since a homeowners insurance policy only offers limited coverage for electronics, this helps protect your computers, home theaters, cameras, cell phones and related equipment.

Adventure Equipment

This endorsement provides coverage for golf clubs, skis, bikes and fishing equipment.

Water Backup and Sump Overflow

If you have water and sump overflow in your basement due to a sump pump failure or sewer backup, this endorsement covers repairs.

Personal Injury

This covers you against damages resulting from personal injury offenses against others. These may include false arrest, imprisonment, malicious prosecution and more.

Earthquake Insurance

You get coverage for your home, detached structures and personal property when damaged by an earthquake.

Mine Subsidence Insurance

For homes built on a former mine, this coverage protects you from damage because of land shifts.

When shopping for home insurance, you want to make sure you get the standard coverages. These include personal property, personal liability, dwelling, other structures, medical payments and loss of use.

If you need flood, earthquake or insect damage coverage, it’s best to check the fine print before purchasing a policy. Usually, you can get this coverage as an endorsement or a separate policy. For example, homeowners insurance through Costco can include earthquake insurance but not flood or insect coverage.

Keep in mind that homeowners insurance coverage depends on your particular needs and situation. A Costco homeowners insurance policy has the following standard coverages.

Personal Property
Personal Liability
Other Structures
Medical Payments
Loss of Use

What Online Homeowners Insurance Tools Does Costco Offer?

Having various online tools and innovative features on an insurer’s website can help improve customer experience. MoneyGeek uncovered the tools provided by Costco via American Family CONNECT to make managing your Costco homeowners insurance policy easier.

Online Quote Tool
Online Bill Pay
Online Claims

Other Costco Insurance Products

Costco offers homeowners insurance through CONNECT, under American Family. Aside from that, it also provides auto insurance and umbrella insurance. It’s worth noting that bundling multiple policies with CONNECT can save you on your premium.

Type of Product

Auto Insurance

Costco auto insurance offers several add-on coverages, including rental car and gap insurance.

Umbrella Insurance

This provides coverage beyond your auto or home insurance, protecting you financially from claims that exceed your policy's liability limits.

ATV Insurance

ATV insurance offers coverage for your all-terrain vehicle in the event of an accident.

Boat Insurance

CONNECT’s watercraft insurance helps protect your sailboat, pontoon, motorboat, fishing boat or personal watercraft.

Collector Car Insurance

Ensure protection for your classic, antique or collector car with CONNECT’s collector car insurance.


To evaluate Costco as a homeowners insurance company, MoneyGeek analyzed the Costco and American Family CONNECT websites, manually collected quotes and consulted consumer intelligence organizations such as J.D. Power, the NAIC and AM Best.