Costco Homeowners Insurance (From Connect): 2023 Review
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Costco home insurance comes from a partner company called Connect, which is part of the American Family Insurance group. 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.
Connect offers a range of coverage options to choose from, plus discounts for things like smoke alarms, bundling multiple policies and renewing your policy.
Connect home insurance star rating
Connect homeowners insurance earned 4 out of 5 stars for overall performance. NerdWallet’s ratings are determined by our editorial team. The homeowners insurance scoring formula takes into account policy coverage options and discounts, ease of filing a claim, website transparency, the financial strength of the company, complaint data from the National Association of Insurance Commissioners and more.
Connect can provide insurance options for Costco members in all states, though some policies may come from affiliates or third parties.
Costco home insurance 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
Pays to repair or rebuild the structure of your home.
Covers damage to unattached structures such as a shed or fence.
Pays to repair or replace personal belongings such as furniture or clothing.
Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.
Covers legal expenses and damages if you're responsible for injuries to other people or their property.
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 your credit card being stolen or hacked, as well as check fraud, 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 receive additional benefits in many states, including:
Glass repair reimbursement, 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 home 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.
Home media equipment: Offers extra coverage for items like TVs, Blu-ray players, cameras and cell phones. This coverage is sold in increments of $2,500, $5,000 and $10,000.
Adventure equipment: Covers items such as golf clubs, skis and bikes without appraisals or a deductible.
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.
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 relatively new 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.
Renewing your policy.
Bundling multiple Connect policies.
Replacing your roof or renovating your plumbing, electrical or heating and cooling systems.
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.
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, upload documents 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 [email protected].
Executive members who are locked out of their home can call 866-641-5443.
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 a higher volume of consumer complaints than expected for a company of its size.
Is Costco home insurance right for you?
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.
Other home insurance companies to consider
Not ready to make a decision? You may be interested in these other homeowners insurance companies:
Geico: Sells home insurance through third parties.
Homeowners of America: Coverage available through local agents in 20 states.
Safeco: Solid home insurance policies with customizable features.
State Farm. Well-established insurer with a long list of coverage options.
Homeowners insurance ratings methodology
NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverage, discounts and online experience. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our full ratings methodology for home insurance.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.