Costco home insurance rates for members vary widely by state in 2026, and the savings aren’t automatic. Coverage comes through CONNECT by American Family, and availability is limited by state. Here’s what homeowners actually pay in sample states, how the member discount works, and how to tell if it beats your current policy.
Costco doesn’t insure your house. Costco home insurance is sold through CONNECT, powered by American Family Insurance, and is not underwritten by Costco itself. Non-members can still buy from American Family, but Costco members receive a discount on their premium. rateschasersmartfinancial
That matters for rates. The member discount layers on top of whatever base rate American Family would otherwise file for your state, property type and risk profile. So a state with expensive base rates stays expensive, just a bit less so. rateschaser
No. I couldn’t find a published Costco rate table by state, and any site claiming exact “Costco rates by state” is likely estimating. The honest approach is to look at American Family’s average rates in states where it sells, then remember that your own Costco quote will differ.
American Family’s homeowners policies are available in 19 states. It doesn’t currently offer home insurance in California or Florida. Its sister company Connect is available in more areas, largely through Costco and Ameriprise Financial, but availability is still limited because American Family’s footprint doesn’t cover every state. Check your state on the Costco insurance page before getting your hopes up. American Family Homeowners Insurance Review 2026 +3
These are American Family base averages for a $300,000 dwelling unless noted, not Costco-discounted quotes. Sources, years and coverage limits differ, so use them as ballparks.
| State | Sample American Family rate |
|---|---|
| Idaho | about $82 a month |
| Indiana | about $89 a month |
| Arizona | about $102 a month |
| Iowa | about $131 a month |
| Colorado | about $176 a month |
| Illinois | about $195 a month |
| Nebraska | $1,916 a year, 45% below the statewide average (2024 data) |
| Wisconsin | $1,493 a year, 31% below the state average American Family Home Insurance Review: Ratings and Quotes (2025) +7 |
Notice the spread: the cheapest sample above works out to under $1,000 a year, while Illinois is more than double that. Sources also disagree about Arizona. A 2024 LendingTree comparison showed American Family at $3,657 a year there versus a $2,623 state average, which is 39% higher. That’s a big gap from the Insurify figure, and it shows how much coverage amounts, home age and the year of data change the result. lendingtree
For context, NerdWallet puts the average U.S. home insurance cost at about $2,490 a year for $400,000 of dwelling coverage, and names Oklahoma, Nebraska and Kansas as the most expensive states. Insurance.com lists a national average of $2,543 a year. Your state and dwelling amount will move your rate far more than the Costco badge will. nerdwalletinsurance
Another caution: NerdWallet found American Family’s average rates were higher than the state averages in nearly all the states it analyzed. The Costco discount may close that gap in some places, but not everywhere. nerdwallet
Costco members get an exclusive discount on Connect home insurance in most states. The size isn’t published as a flat percentage, and it varies by state. Other ways to save include: nerdwallet
Also factor in the membership cost. One review notes a Costco membership runs $60 to $120 a year. That fee can wipe out a small saving. clearsurance
Good fit: Executive Members in an American Family service state who also want to bundle auto, or homeowners with newer or renovated homes. That’s the profile where the program makes the most sense. rateschaser
Probably not: Anyone in a state without coverage, and anyone who hasn’t compared at least three quotes. Even with your Costco discount, another insurer could still give you a lower rate. policygenius
Costco home insurance can be a smart deal in the right state for the right member, but it isn’t a guaranteed bargain. Treat the Costco discount as one factor, compare quotes, and focus on the total yearly cost and coverage. This article is general information, not insurance advice, so confirm details with a licensed agent.