Costco Homeowners Insurance (From Connect): 2024 Review

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.

» MORE: The best homeowners insurance companies

How Costco home insurance stacks up

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

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.

» MORE: How much homeowners insurance do you need?

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.

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.

» MORE: 6 essential terms to understand in your homeowners policy

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.

» MORE: The average cost of homeowners insurance

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