Uncovering the Truth: Does Costco Really Offer Home Insurance?

Curious about whether you can get home insurance through Costco? While Costco offers various member benefits, home insurance isn't directly sold by them. Instead, they partner with insurers to provide options for members.

Sydney Blunt

• 3 min read
Uncovering the Truth: Does Costco Really Offer Home Insurance?

Understanding the Relationship Between Costco and Home Insurance

With its wide range of member services, including travel packages, car rentals, and even auto insurance discounts, it’s natural to wonder whether Costco offers home insurance. The notion might stem from Costco's reputation for providing valuable benefits to its members, but it's essential to explore if and how Costco integrates home insurance services into its offerings.

Does Costco Offer Home Insurance?

As of 2026, Costco itself does not directly offer home insurance policies. However, they partner with CONNECT, powered by American Family Insurance, to offer exclusive discounts on auto and home insurance products to Costco members. This partnership means that while you're not buying insurance directly from Costco, you can access discounted rates through your club membership.

How Does the Partnership Work?

CONNECT provides a range of home insurance options and has garnered positive reviews for its customer service and competitive pricing. Costco acts as a facilitator, offering its members access to CONNECT's premium services at discounted rates. Here's how it typically works:

  • Special Discounts: Costco members can save more on their insurance premiums than the general public by accessing special member-only discounts. These may apply to various aspects of the policy, like premium reductions or lower deductibles.
  • Exclusive Offers: Periodically, bonus offers or additional savings might be available, which enhance the value of choosing CONNECT through Costco.
  • Seamless Sign-Up:** – Costco members can easily connect with CONNECT to get quotes and purchase policies through a streamlined process.

Why Consider Getting Home Insurance Through Costco’s Partnership?

Choosing CONNECT through Costco can bring multiple benefits beyond just financial savings. Here are some reasons why members might opt for this route:

  • Reputation and Trust: Both Costco and American Family Insurance have strong reputations for customer service and satisfaction, assuring reliability.
  • Comprehensive Coverage: Beyond basic coverage, options for tailored plans can match specific needs, like high-value items or extended liability coverage.
  • Bundling Options: Members who opt for both auto and home insurance through CONNECT can benefit from bundling discounts, maximizing savings and convenience.

What to Consider Before Choosing This Option

While the benefits of the Costco and CONNECT partnership are attractive, there are several factors potential policyholders should evaluate:

  • Policy Limitations: Each insurance provider has unique terms and exclusions, which should be thoroughly reviewed to ensure the policy meets all your needs.
  • Cost Analysis: While the discounts are beneficial, comparing costs with other top insurance providers is essential to ensure you're getting the best deal.
  • Customer Service Ratings: Look up the latest reviews from existing customers on platforms like J.D. Power to gauge service satisfaction.

Real-World Example: A Case Study

Consider John, a loyal Costco member in California. Searching for home insurance, he discovered the Costco and CONNECT offering, boasting an attractive 20% savings on premiums compared to his previous provider. After reviewing the coverage details and ensuring the policy catered to his family's needs, including coverage for their home office and additional personal property, John made the switch. Months later, after a minor home incident, John found the claims process through CONNECT straightforward and efficient, affirming his decision to opt for the benefit through Costco.

With the insurance sector evolving and competition ramping up, industry insights can be pivotal in making an informed decision:

  • Recent studies show that bundling home and auto insurance can lead to average savings of 25% (Source: Insurance Journal).
  • A 2026 survey by J.D. Power reveals that companies consistently rated for customer satisfaction, like American Family Insurance, see higher retention rates and customer trust (J.D. Power).

Final Thoughts

While Costco does not directly offer home insurance, its partnership with CONNECT provides members with valuable options and discounts. This collaboration can be especially advantageous for those already utilizing Costco's vast array of member services. However, potential policyholders must carefully review their options and consider their unique coverage needs before making a decision.