Costco Homeowners Insurance (From Connect): 2024 Review
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Connect
Coverage options
Discounts
NAIC complaints
Connect
Coverage options
Discounts
NAIC complaints
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About Costco home insurance from Connect
Costco home insurance comes from a partner company called Connect, which is part of the American Family Insurance group. Connect homeowners insurance earned 3.5 out of 5 stars for overall performance. 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.
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How Costco home insurance stacks up
Special discount and perks for Costco members.
Various other discounts available.
Includes replacement cost coverage for belongings in most states.
More consumer complaints than expected for a company of its size.
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 more consumer complaints than expected for a company of its size.
Standard 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 sheds or fences. | |
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 can help you recover if your identity is stolen. Learn more about identity theft insurance.
Credit card or check fraud. This covers losses due to check fraud or a stolen or hacked credit card.
Food spoilage. If your food spoils due to a power outage, Connect can pay to replace it.
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, twice a year, if you’re locked out of your home.
Optional Costco home insurance coverage
Connect offers several types of optional coverage that you may be able to add to its homeowners policies, depending on where you live.
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.
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.
Earthquake: Covers damage to your home and belongings from an earthquake.
Personal injury: Covers claims against you for issues such as slander, libel and wrongful eviction.
Mine subsidence: Pays for damage to a building located over a mine. This includes settling, foundation cracks or the collapse of your house.
What’s not covered
Connect 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.
Most homeowners insurance companies, including Connect, will not cover damage to your home from overflowing bodies of water, tidal surge or other types of flooding. If you live in an at-risk area, you may want to consider buying separate flood insurance.
Discounts
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 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 Connect 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 your own pocket.
Consumer complaints
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.
What Reddit users say about Costco/Connect home insurance
Reddit is an online forum where users share their thoughts in “threads” on various topics. The popular site includes plenty of discussion on financial subjects like homeowners insurance, so we sifted through Reddit forums to get a pulse check on how users feel about insurers. People post anonymously, so we cannot confirm their individual experiences or circumstances.
Comments about Costco/Connect insurance tend to be relatively positive, with people praising the company’s friendly customer service and affordable rates. However, some Redditors found better rates with other companies, highlighting the importance of shopping around. (We recommend getting at least three home insurance quotes.) Reviews of Connect’s claim processing were mixed, with some commenters having a smooth experience and others reporting issues.
Questions from Reddit: Our experts answer
Can I save money by switching to Costco/Connect?
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 out 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, so the insurer that’s cheaper for your friends’ or family’s homes may not always be the most affordable one for you.
How long should it take Costco/Connect 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, while severe natural disasters can create a backlog of claims that will take insurers a long time to get through.
Some states have laws requiring that your insurer 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.
Digital experience
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, update your personal information and view policy details.
How to file a claim with Costco/Connect
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.
How to contact Costco customer service
Costco members can call 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.
Costco home insurance: The bottom line
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.
Current Product
|  |  |
|---|---|---|
NerdWallet rating 3.5 /5 | NerdWallet rating 4.0 /5 | NerdWallet rating 4.5 /5 |
Complaints to NAIC More than expected | Complaints to NAIC Fewer than expected | Complaints to NAIC Fewer than expected |
Coverage More than average | Coverage About average | Coverage More than average |
Discounts Average set of discounts | Discounts Average set of discounts | Discounts Average set of discounts |
Bottom line Costco homeowners insurance policies come from Connect, an American Family company. | Bottom line A solid option that's available in most states. | Bottom line Well-established insurer with a lengthy list of coverage options. |
Other insurance companies to consider
Not ready to make a decision? You may be interested in these other homeowners insurance companies:
How we rate homeowners insurance
NerdWallet’s star ratings reward companies for consumer-first features and practices. We evaluate factors such as financial strength, consumer complaints, coverage, discounts and customer experience.
In our research, we analyzed:
More than 270 million homeowners insurance rates.
More than 50 insurance companies.
Nearly 200 homeowner profiles.
View our complete homeowners insurance rating methodology.
Methodology
Homeowners insurance star 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 2021-2023. 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.
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