Costco is offering deals on home insurance in 2026 through its partnership with American Family Insurance, giving members a discount in most states, but the savings vary widely by home and location. Here is what the program covers, what the fine print says, and how to compare it against other insurers before you switch.
Costco doesn’t write home insurance itself. Costco’s own page says members may receive an exclusive discount on auto and home insurance when they switch to American Family Insurance. NerdWallet’s review confirms that Costco home insurance comes from a partner company called American Family, and notes that members get an exclusive discount on American Family home insurance in most states. auto home insurance services +2
A naming note: you may still see the program called Connect. One review explains the car insurance side used to be called Connect before it changed its name to American Family Insurance in December 2025. Either way, it’s the same member-discount program. Be aware that one third-party guide lists a different home insurance partner, Homesite, so confirm the underwriter on your own quote. nerdwallet
There’s no flat number. An insurance analyst answering a member’s question put it this way: the Costco discount isn’t a flat percentage, and results vary widely by location and property details. The same analyst described it as basically a negotiated member discount and a few small benefits on an American Family-backed policy, and said it’s usually worth getting a quote to compare. thezebrathezebra
Bankrate adds that specific premium data for Costco home insurance is not publicly available, so no one can promise you a price in advance. The only way to know is to get a quote. bankrate
The member discount isn’t the only way to lower your premium. MoneyGeek lists several discount types, including:
Bankrate does warn the program has limited home insurance discounts overall, so ask your agent exactly which ones apply to you. bankrate
The structure is standard. One guide describes it as dwelling coverage, personal property, liability, and loss of use, with the Costco member discount applied at the quote stage. Liability also extends beyond your house: coverage pays if you, a family member or a pet injures someone away from your home. joingeraldnerdwallet
Members may also get extras, such as coverage for locksmith service after being locked out. Bankrate says the home policies are more robust than the company’s car insurance offerings and could be a good choice for members looking for customizable coverage. nerdwalletbankrate
Like most policies, this one has limits. NerdWallet notes that most homeowners insurance companies, including American Family, cover only limited types of water damage, such as a burst pipe. In practice, that means: nerdwallet
Ask about these before you buy, especially if you live in a flood zone, a storm-prone area, or a seismic region.
American Family is a large, established insurer. One 2026 review says it holds a financial strength rating of ‘A’ (Excellent) as of 2026. MoneyGeek gave American Family an overall score of 86 out of 100 and 4.10 out of 5 for customer satisfaction. When you file a claim, you’re dealing with American Family, not Costco. NerdWallet adds that the American Family website for Costco members offers more details, plus online quotes and claim filing. Gerald Wallet Home +2
Note that the auto side has drawn more complaints than expected. NerdWallet reports that policyholders of the car insurance through Costco submit more complaints to state regulators than expected for the insurer’s size. That’s about auto insurance, but it’s a reason to check complaint data for your state before buying any policy. nerdwallet
You need to be a Costco member to get the deal, so factor in the fee. A 2026 guide lists it as $65 for Gold Star and $130 for Executive. NerdWallet puts it plainly: if you’re not already a member, the discount may not be worth the annual fee if you won’t use other Costco member benefits. joingeraldnerdwallet
Also remember that if your membership lapses, you’d lose access to the member discount and potentially the policy itself. Ask the agent exactly what happens if you let your membership expire. joingerald
Costco’s home insurance deal is real, but it’s a member discount on an American Family policy, not a guaranteed low price. For existing members who can bundle and want a solid insurer, it’s worth a quote. But rates depend on your home, location, and coverage, so compare it against other insurers before switching. The best deal is the policy that protects your home properly at a price you can afford.
This article is general information, not insurance or financial advice. Availability, discounts, and rates vary by state and property; confirm details with Costco’s program, American Family, or a licensed agent.