Costco Home Insurance through CONNECT offers potential savings via an exclusive member discount and some potentially useful perks. State regulators and Costco Home Insurance Reviews consistently report a high volume of customer complaints, particularly concerning claims handling and service. Members face significant issues, although some are satisfied.
While the member discount can lead to savings (with some members reporting significant initial savings), overall pricing can be mixed. Some reviews and analyses found CONNECT’s rates (even with the discount) to be higher than competitors, while others found them very competitive, especially initially. Several user reviews (especially on Reddit) mention significant premium increases after the first year or renewal period.
Costco CONNECT insurance
Costco does not underwrite its own insurance policies. Instead, it offers auto and home insurance through a partnership with CONNECT, powered by American Family Insurance. CONNECT is part of the American Family Insurance group. So, when you get “Costco insurance,” the actual policy and service come from CONNECT/American Family. The program is available in most states, but there may be exceptions. It is not being offered in California or Florida at the time of the report, and the Costco Insurance Agency isn’t licensed in New York.
The program is designed for Costco members (Gold Star and Executive). While anyone can technically buy insurance from CONNECT directly, the special discounts and perks are tied to having a Costco membership. CONNECT, as part of American Family, generally holds strong financial strength ratings (e.g., ‘A’ from AM Best), indicating a good ability to pay out claims.
Costco CONNECT Insurance Benefits & Features
- Exclusive Member Discount: The primary draw is a discount on premiums specifically for Costco members in most states.
- Executive Member Perks: Executive members might receive additional benefits, which can sometimes include things like lifetime renewability (guaranteeing the option to renew, not price) or slightly larger discounts, depending on the state and policy.
- Potential Included Coverages (Vary by state): Policies often include benefits like identity theft protection, refrigerated property coverage (food spoilage), check/credit card fraud coverage, and home lockout assistance.
- Standard Coverage: Policies include typical homeowners coverages like dwelling, other structures, personal property (often at replacement cost), loss of use, personal liability, and medical payments.
- Optional Coverage: You can usually add endorsements for things like high-value items (scheduled personal property), water/sewer backup, etc.
- Bundling: Discounts are often available for bundling home and auto insurance.
Is Costco Home Insurance Legit?
Costco CONNECT Home insurance, is a legitimate and reputable option for homeowners, with solid coverage and benefits, particularly for Costco members. However, it’s important to consider the higher-than-average consumer complaints and ensure it meets your specific needs.
Pros and Cons of Costco Home Insurance
Costco Home Insurance Pros
- Special Discounts for Costco Members:
- Costco members, especially Executive members, receive exclusive discounts on premiums.
- Additional perks such as locksmith services and identity theft protection.
- Comprehensive Coverage Options:
- Offers a wide range of coverages including dwelling, personal property, liability, and loss of use.
- Optional coverages like earthquake and flood insurance.
- Replacement Cost Coverage:
- Ensures personal belongings are replaced at their current market value without depreciation.
- Financial Strength:
- CONNECT (powered by American Family Insurance) has a strong financial rating, ensuring reliability and stability.
- Efficient Claims Process:
- Streamlined claims process with online and phone reporting options.
- Prompt investigation and processing of claims.
Costco Home Insurance Cons
- Higher-than-Average Consumer Complaints:
- More consumer complaints than expected for a company of its size.
- Issues related to customer service and claims handling.
- Limited Availability:
- Not available in all states, limiting access for some potential customers.
- Premium Variability:
- Premiums can vary significantly depending on location and specific coverage needs.
- Some customers may find rates higher compared to other insurers.
- Coverage Limits:
- Certain coverages, like Home Glass Repair Reimbursement, have specific limits (e.g., $1,000 per incident).
Coverage and Limits
Costco home insurance, provided through CONNECT (powered by American Family Insurance), offers a variety of coverages designed to protect homeowners. Connect designed These coverages to offer comprehensive protection for homeowners, with additional benefits and discounts available to Costco members. Here are some of the key coverages included in Costco home insurance policies:
| Coverage Type | Description |
|---|---|
| Dwelling Coverage | Covers the structure of your home in case of damage from covered perils. |
| Personal Property Coverage | Covers personal belongings inside the home. |
| Liability Coverage | Protects against legal liability for injuries or property damage to others. |
| Loss of Use Coverage | Covers additional living expenses if your home is uninhabitable due to a covered loss. |
| Medical Payments Coverage | Covers medical expenses for guests injured on your property. |
| Identity Theft Protection | Provides assistance and coverage for identity theft incidents. |
| Home Glass Repair Reimbursement | Covers the cost of repairing glass damage in the home. |
| Home Lockout Assistance | Covers locksmith services if you are locked out of your home. |
| Coverage Type | Limits |
|---|---|
| Dwelling Coverage | Up to the replacement cost of the home |
| Personal Property Coverage | Replacement cost coverage in most states |
| Liability Coverage | Typically $100,000 to $500,000 |
| Loss of Use Coverage | Up to 20% of dwelling coverage |
| Medical Payments Coverage | Typically $1,000 to $5,000 |
| Identity Theft Protection | Up to $5,000 |
| Home Glass Repair Reimbursement | Up to $1,000 per incident for glass repair, twice a year |
| Home Lockout Assistance | Up to $100 for locksmith services, twice a year |
Costco Home Insurance Cost
Costco home insurance offers competitive rates and valuable discounts for members, but it is essential to consider the higher-than-average number of consumer complaints and the specific coverage needs of your home. While the member discount can lead to savings (with some members reporting significant initial savings), overall pricing can be mixed. Some Costco Home Insurance reviews found CONNECT’s rates (even with the discount) to be higher than competitors, while others found them very competitive, especially initially. Several Costco Insurance reviews mention significant premium increases after the first year or renewal period.
| Coverage Type | Rates (Approximate) |
|---|---|
| Dwelling Coverage | $100 to $300 per month |
| Personal Property Coverage | Included in standard policy |
| Liability Coverage | Included in standard policy |
| Loss of Use Coverage | Included in standard policy |
| Medical Payments Coverage | Included in standard policy |
| Identity Theft Protection | $8.99 per month |
| Home Glass Repair Reimbursement | Included at no additional cost for Costco Executive members |
| Home Lockout Assistance | Included at no additional cost for Costco Executive members |
| Home Price | Costco Cost | US Average Cost |
|---|---|---|
| $200,000 | $1,200 | $1,348 |
| $350,000 | $1,800 | $1,951 |
| $500,000 | $2,400 | $2,553 |
| $750,000 | $3,300 | $3,496 |
Costco Home Insurance Quote
You can get a quote online via the CONNECT website specifically for Costco members or by calling their dedicated phone number (1-888-404-5365 or similar numbers listed on the Costco/CONNECT sites). You will need your Costco membership number.
More: Citizens insurance reviews
Ratings from Third-Party Organizations
- TrostPilot: Gave Costco Home Insurance 1.8 out of 5 stars for overall performance.
- NerdWallet: Gave CONNECT 3.5 out of 5 stars for overall performance.
- The Zebra: Gave Costco insurance (CONNECT) 2 out of 5 stars, labeling it a “below average” insurance company, citing poor customer service ratings and a high NAIC complaint index as contributing factors.
- Bankrate: Provided a rating of 3.2 out of 5 stars for CONNECT home insurance.
- NAIC: Consistently shows a higher-than-expected complaint ratio for CONNECT.
- A.M. Best: Rates CONNECT with an ‘A’ (Excellent) for financial strength.
- BBB: Some reviews mention that CONNECT has a low BBB rating, although one source indicated that the BBB gave CONNECT an A+, highlighting potential discrepancies or different entities being reviewed. Customer reviews on the BBB site for CONNECT show a very low average (e.g., 1.22 out of 5 stars from one set of reviews).
- J.D. Power: CONNECT itself is often not directly rated in J.D. Power’s home insurance studies. Its parent company, American Family, sometimes performs well, particularly in digital experience or auto claims, but this doesn’t always directly translate to CONNECT’s home insurance service.
Costco Home Insurance Claims
Costco leverages its brand and membership for potential discounts, but CONNECT, powered by American Family Insurance, handles the actual insurance policy and claims. According to the National Association of Insurance Commissioners (NAIC), CONNECT has historically had a higher number of complaints relative to its size compared to the industry median. Reviews on the claims experience with CONNECT are varied. Some members report smooth, efficient claims processes and helpful customer service, even for significant claims like roof replacements. Others have reported issues such as delays in communication, difficulty reaching adjusters, disagreements over repair estimates, and frustrations with the overall process. Some online Costco CONNECT insurance reviews mention concerns about potentially being dropped after filing claims.
In summary, be prepared with all necessary details when filing a claim via phone or online. Keep in mind that while many customers are satisfied, others have reported challenges with the claims process.
How to File a Claim
You have several options available 24/7:
Several options to File a Claim 24/7:
- Online: This is often cited as the quickest method. You can file through the CONNECT website, either by logging into your account or sometimes as a guest.
- Phone: Call the dedicated CONNECT claims number: 1-800-872-5246.
- Mobile App: Use the “Connect by American Family Insurance” mobile app.
Information Needed When Filing:
- Your policy number.
- Details about the loss (what happened, date, time, location).
- Photos or videos of the damage, if possible and safe to obtain.
- Any police report number, if applicable.
Costco Home Insurance Claims reviews
Based on Costco CONNECT reviews and consumer data, experiences with home insurance claims are quite mixed. Here’s a breakdown of what people are saying:
Positive Feedback:
- Ease of Filing: Many appreciate the ability to file claims 24/7 online or by phone.
- Good Customer Service (Sometimes): Some policyholders report positive interactions with friendly, helpful, and professional customer service representatives. Company testimonials highlight satisfaction with service and savings.
- Smooth Process (for some): There are accounts of claims (including significant ones like roof damage) being handled smoothly, efficiently, and fairly, sometimes resolving within days or weeks.
- Financial Stability: CONNECT insurance holds a strong financial strength rating (e.g., ‘A’ from A.M. Best), indicating a good ability to pay claims.
Negative Feedback & Common Complaints:
- High Complaint Volume: Multiple sources (like NerdWallet, The Zebra, SmartFinancial) consistently point out that CONNECT receives a higher number of consumer complaints filed with state regulators via the National Association of Insurance Commissioners (NAIC) than expected for an insurer of its size, specifically regarding home insurance. It was more than double the expected number in 2023.
- Poor Customer Service/Communication: Some reviewers describe significant issues with customer service during the claims process, including difficulty reaching adjusters, lack of return calls, and unhelpful interactions.
- Claims Delays: Reports mention substantial delays in various stages: getting an adjuster assigned, scheduling inspections, receiving estimates, and getting claim payouts reviewed and finalized.
- Disputes Over Payouts: Some policyholders have experienced disagreements between CONNECT’s repair estimates and their contractor’s bids, leading to disputes over the final settlement amount.
- Vendor Issues: At least one related discussion (involving Homesite, sometimes linked with Connect/AmFam) detailed nightmares with insurer-recommended vendors not being paid, leading to threats of liens, or doing faulty work.
- Rate Increases/Cancellations After Claims: Some users report significant premium increases or even policy non-renewal after filing claims, sometimes even for claims where they weren’t at fault or for relatively minor incidents like windshield replacement.
- Low Third-Party Ratings: Company-sponsored surveys show high satisfaction, but independent sources like the Better Business Bureau (BBB) give low ratings (though this might be more auto-focused). JD Power homeowner claim satisfaction studies often don’t specifically rate CONNECT.
Last Costco Home Insuranc Reviews
Reviews for Costco home insurance (CONNECT) are generally mixed. While there’s an allure of member discounts and some positive experiences, official complaint data and numerous customer reports suggest that satisfaction isn’t universal, particularly concerning customer service and claims.
Costco home insurance can be a good option for existing Costco members due to the discounts and additional perks. However, it may not always offer the best deal compared to other insurance providers, and potential customers should consider the higher complaint rate and evaluate if the membership fee is justified by the insurance benefits.
Positive Reviews
- That was easily my cheapest home insurance option when I shopped rates about 4-5 years ago. A big Amica increase became a big decrease. Costco was the second best, via Ameriprise at that time.
- Thanks all. The Costco/American Family price is so cheap I’m going to have to study it carefully to make sure I’ve got enough coverage. It was only a little over 1k a year compared to 2600 for Amica and 1700 for Progressive. AAA renewal was 4k.
- I have the costco home insurance (and auto insurance), just for an year not very long though. They were lower compared to what I had (geico + hippo) when I shopped an year ago. But this year they increased my home premium stating this is the first increase in 10 years, no change in auto. I might have to look around to see whether the new rates are still competitive.
Complaints and Negative Reviews
- Myextremely disabled brother-in-law ordered a Ketler shed and paid nearly £300 for installation about six months ago. He trusted the installers and couldn’t supervise the installation. Recently, high winds blew the roof off, despite the shed being in a sheltered spot. A tradesperson discovered that the roof was secured with only one screw/bolt instead of the correct number. Proper installation would likely have prevented the damage. Costco refused to help, suggesting a home insurance claim instead. You are requesting a partial refund for the fitting cost to cover the repair. You criticize Costco’s service and advise against joining, as they charge a yearly membership fee but fail to support clients when issues arise.
- Costco Thurmaston in leicester, bought TCL tv 50 inches that stopped working due to screen problem, still in the 90 days return. Manager refused to return saying it damaged and my home insurance shall cover it not Costco. I took the TV out of its packaging and showed her that there was no damage or denture; it was a fault. She insisted that it was damaged and refused to accept the return, so after a month, the money went down the drain. I have been a member since 2011 (started at the Watford warehouse), and the management is really bad.
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