Costco Insurance
- Special discount and perks for Costco members.
- Various other discounts available.
- Includes replacement cost coverage for belongings in most states.
- Available only to Costco members.
About Costco home insurance
Costco home insurance comes from a partner company called American Family. Costco homeowners insurance earned 4.2 out of 5 stars for overall performance. Costco members get a special discount on home insurance and may also be eligible for extra perks such as coverage for locksmith service after being locked out.
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 if you’re not already a member, the discount may not be worth the annual fee if you won’t take advantage of any other Costco member benefits.
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Answer a few questions to see custom quotes and find the right policy for you.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 discount and some small coverage perks.
Other discounts. You may be able to save money on Costco insurance by bundling multiple policies, having a new home or installing a burglar alarm.
Replacement cost coverage for personal belongings in most states. If a fire destroys the sofa you’ve had for 8 years, American Family 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
Availability. Only Costco members can get this insurance, which means you’ll need to pay an annual membership fee.
- Find the best homeowners insurance in your state
What Costco home insurance covers
These types of home insurance coverage generally come standard:
- Dwelling
Dwelling coverage pays to repair or rebuild the structure of your home after a covered event. It also covers attached structures, such as porches.
Typical amount: Enough to rebuild your home.
- Other structures
Other structures coverage pays to repair or rebuild stand-alone structures on your property, such as a fence or shed.
Typical amount: 10% of dwelling coverage.
- Personal property
Personal property coverage pays to repair or replace stolen or damaged belongings. Personal property coverage comes in one of two options: actual cash value or replacement cost.
Typical amount: 50-70% of dwelling coverage.
- Loss of use
Loss of use coverage, sometimes known as additional living expenses coverage, helps pay temporary living expenses while your home is being repaired. This can cover hotel stays, home rentals and meals.
Typical amount: 20% of dwelling coverage.
- Personal liability
Personal liability coverage pays if you injure someone or cause property damage unintentionally or through neglect.
Typical amount: $100,000 to $500,000.
- Medical payments
Medical payments coverage pays to treat someone injured on your property, regardless of who’s at fault. It also pays if you, a family member or a pet injures someone away from your home.
Typical amount: $1,000 to $5,000.
For more details, see What Does Homeowners Insurance Cover?
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 reimbursement, which will pay up to $1,000 to fix broken windows.
Home lockout assistance, which covers up to $100 for locksmith services if you’re locked out of your home.
Optional Costco home insurance coverage
American Family offers several types of optional coverage that you may be able to add to your policy, depending on where you live.
Water backup and overflow: Pays for damage from a sump pump failure or sewer backup.
Service line: Pays for damage to utility lines or pipes that connect your home to the street.
Identity theft: Can help you recover if your identity is stolen. Learn more about identity theft insurance.
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.
Equipment breakdown: Pays to repair appliances or major household systems after a sudden failure.
Earthquake: Covers damage to your home and belongings from an earthquake.
Refrigerated food: If your food spoils due to a power outage, your policy can pay to replace it.
Personal injury: Covers claims against you for issues such as slander, libel and wrongful eviction.
What’s not covered
Costco homeowners policies don’t cover damage due to:
Flooding.
Earthquakes.
Backed-up sewers or drains.
Lack of maintenance.
As noted above, optional coverage is available for some of these scenarios.
More Nerdy Perspective
Most homeowners insurance companies, including American Family, will cover only limited types of water damage to your home, such as a burst pipe. But damage from tidal surge, overflowing rivers and heavy rain won’t be covered unless you have separate flood insurance. Keep in mind that flooding is the most common natural disaster in the U.S., and your home doesn’t need to be in a high-risk zone to flood.
Discounts
Costco members get an exclusive discount on American Family home insurance in most states. You may also be able to save on your premium by:
Having a newly built home, or buying a home that’s new to you.
Adding protective devices like security alarms, a sprinkler system or a direct-line fire alarm.
Bundling multiple policies.
Replacing your roof.
Paying your premium in full rather than installments.
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 pocket.
Consumer satisfaction
One strong sign of consumer satisfaction is how many people complain about their insurance company to state agencies. Costco gets a middling score on this measure, drawing an average proportion of home insurance complaints compared to other U.S. insurers.
How we determined our complaint scores We analyzed three years' worth of complaint data from the National Association of Insurance Commissioners. When comparing insurers, we accounted for company size and total premiums.
How to file a claim with Costco/American Family
You can file a homeowners claim online or by calling American Family at 888-404-5365. The claims line is available 24 hours a day. The company says an adjuster will generally reach out to you within 48 hours of reporting your claim.
Here are some key things to remember when filing a home insurance claim:
Document the damage. Take photos and create an inventory of damaged items. Provide details like labels and model numbers if possible, especially for more expensive items. Once you've documented the damage, you can make temporary repairs if it's safe to do so.
File your claim as soon as possible. This is especially important if the damage was caused by a storm, as it likely means other homes in the area were also affected.
Save your receipts. You may end up spending money on temporary repairs or living expenses before getting a payment from your insurance company. Keep all receipts so you can submit them for reimbursement later.
For more information, see how to file a home insurance claim.
How to contact Costco customer service
Phone: Costco members can call 888-239-9953 for customer assistance. Executive members who are locked out of their home can call 866-641-5443.
Email: Costco members can reach out to servicepromise@amfam.com.
Online tools
Costco’s website has relatively little information about its insurance policies. However, the American Family 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 documents.
Other insurance companies to consider
Not ready to make a decision? You may be interested in these other homeowners insurance companies:
- See all NerdWallet home insurance reviews
How we rate homeowners insurance
NerdWallet’s star ratings reward companies for consumer-first features and practices. We evaluate factors such as consumer experience, coverage, discounts and financial strength.
In our research, we analyzed:
More than 270 million homeowners insurance rates.
More than 100 insurance companies.
Nearly 200 homeowner profiles.
View our complete homeowners insurance rating methodology.
Frequently asked questions
What other types of insurance are available?
What other types of insurance are available?
Costco and American Family offer 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?
Who is Costco’s insurance provider?
Costco home insurance is provided by the American Family Insurance group. Learn more about American Family.
Is Costco home insurance good?
Is Costco home insurance good?
NerdWallet has rated Costco’s home insurance provider with 4.2 stars out of 5. The company has a solid slate of coverage options and discounts.
Can I save money by switching to Costco?
Can I save money by switching to Costco?
It’s worth checking, especially if you’re already a Costco member. Home insurance rates have been increasing recently across the U.S. due to inflation and more frequent natural disasters. When companies have to pay more in claims, they raise their premiums to compensate. Shopping around every few years is a good way to make sure you’re still getting the best price for the coverage you need.
Keep in mind that every company calculates its homeowners premiums a little differently. The insurer that’s cheapest for your friends’ or family’s homes may not always be the most affordable one for you.
How long should it take Costco/American Family to process a homeowners insurance claim?
How long should it take Costco/American Family to process a homeowners insurance claim?
The time it takes to settle a home insurance claim may vary, with some taking a few weeks and others taking months. Smaller individual claims tend to be quicker to process. Meanwhile, severe natural disasters can create a backlog of claims that will take insurers a long time to get through.
Some states have laws requiring your insurer to acknowledge receipt of your claim within a certain time period, such as 30 days. But it may take much longer than that to receive your payout.
Star rating 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, claims process and website functionality. 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 or star ratings.
Here’s how we weighted each category to come up with our list of the best home insurance companies:
Consumer experience (40%).
Financial strength (30%).
Coverage (25%).
Discounts (5%).
Read our full home insurance ratings methodology for more details.
Complaint methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2022-2024. To assess how insurers compare with 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.
