Home insurance premiums have become an important household expense across the United States, making member discounts and policy benefits increasingly relevant when comparing insurance providers. In 2026, Costco members can receive an exclusive discount on qualifying home insurance through American Family Insurance, although the company does not publish one standard savings percentage for every Costco member.
Costco does not directly underwrite homeowners insurance. The Costco member insurance program is provided through American Family Insurance and its related underwriting companies.
Costco members can request personalized home insurance pricing and may receive an exclusive member discount when eligible. The discount is subject to underwriting requirements and state-specific rules.
This means there is no universal statement such as “every Costco member saves 20%.” The amount of savings can differ significantly from one household to another.
The most important point is that Costco and American Family Insurance do not currently publish a single nationwide percentage for the Costco member home-insurance discount.
For example, a hypothetical homeowner paying $2,000 annually could save $200 if a 10% discount applied. A 15% discount would equal $300, while a 20% discount would equal $400.
These figures are illustrations rather than published Costco savings rates.
The actual calculation depends on the insurance premium and discounts that apply to a particular policy.
| Annual Premium Before Discount | 10% Example | 15% Example | 20% Example |
|---|---|---|---|
| $1,500 | $150 | $225 | $300 |
| $2,000 | $200 | $300 | $400 |
| $2,500 | $250 | $375 | $500 |
| $3,000 | $300 | $450 | $600 |
The table demonstrates how percentage-based savings could affect annual costs, but it should not be interpreted as Costco's published discount schedule.
The Costco insurance program states that eligible Costco members may receive an exclusive discount on home and auto insurance.
The discount is tied to Costco membership, but eligibility and pricing are subject to underwriting criteria and state regulations.
A Costco membership number can be provided when purchasing a qualifying policy so the member discount can be applied when eligible.
The program is designed to provide a membership-based pricing benefit in addition to other discounts that may apply to a home insurance policy.
The Costco member discount is only one potential way to reduce a premium.
American Family Insurance lists several other home-insurance discounts that may apply depending on the state and property.
A recently purchased or newly constructed home may qualify for a discount under certain conditions.
The qualification criteria can vary by state, so the age of the property and purchase circumstances may affect eligibility.
Security and fire-protection features may also affect insurance pricing.
Examples can include:
The exact discount and qualifying equipment can vary by location.
A recently replaced roof may qualify for an insurance discount in qualifying states.
American Family Insurance states that a complete roof replacement within the previous nine years may qualify, subject to specific requirements. The work must meet local codes and other eligibility conditions.
Roof age can also affect insurance underwriting because older roofing materials may present greater exposure to weather-related losses.
A household purchasing more than one qualifying insurance product from the same insurer may qualify for a multi-product discount.
For example, combining home and auto insurance can potentially reduce the overall insurance cost compared with purchasing separate policies from different insurers.
The savings should be evaluated based on the total premiums and coverage rather than the discount percentage alone.
Executive Membership can provide additional home-related benefits under qualifying policies.
One notable benefit is home glass repair reimbursement. Eligible Executive Members may receive up to $1,000 toward qualifying window-glass repair or replacement, subject to policy terms and limitations.
The benefit is limited to two claims during any consecutive 12-month period.
Executive Members may also receive home lockout assistance of up to $100 per occurrence, subject to conditions and a limit of two claims during any consecutive 12-month period.
These benefits are different from the regular Costco member insurance discount. They are policy benefits associated with qualifying Executive Membership arrangements.
State restrictions apply, and some benefits are not offered in every state.
Costco's insurance program is not identical across the country.
The current program states that the Costco member discount is not offered on home insurance in Florida and Tennessee.
Executive Member benefits also have state-specific restrictions. For example, the home glass repair reimbursement and home lockout benefits have additional state exclusions.
Because insurance is regulated at the state level, pricing, underwriting, discounts, deductibles, and policy features can differ considerably between states.
A Costco membership alone does not determine the final premium.
Insurance companies generally consider numerous factors when calculating homeowners insurance rates.
The property's location can have a major effect on premiums.
Areas with greater exposure to hurricanes, wildfires, tornadoes, hail, flooding, or other severe weather can have higher insurance costs.
The estimated cost of rebuilding the home is another important factor.
A larger property, expensive construction materials, custom features, or specialized architectural elements can increase the amount of dwelling coverage needed.
Older homes can sometimes have higher insurance costs because of aging roofs, plumbing, electrical systems, heating systems, or other components.
Recent renovations and replacement of major systems may influence underwriting.
Previous insurance claims can affect pricing and eligibility.
The number, type, and timing of claims may be considered when calculating premiums.
A higher deductible generally means a homeowner accepts more of the initial cost after a covered loss.
In some circumstances, selecting a higher deductible can reduce the premium. However, the deductible should remain financially manageable.
Higher coverage limits can increase premiums.
A policy should provide sufficient protection for the dwelling, personal property, liability exposure, and other covered risks without paying for unnecessary coverage.
Not necessarily.
A Costco member discount does not automatically mean the final premium will be lower than every competing insurer.
Insurance pricing is highly individualized. Another company could have a lower base rate for a particular property, while the Costco program could become more competitive after the member discount and other qualifying discounts are included.
Comparing the final premium alongside coverage limits, deductibles, exclusions, claims service, and policy benefits provides a more meaningful comparison than looking only at a membership discount.
When comparing Costco-associated home insurance with another insurer, several figures should be reviewed.
Compare the total yearly premium rather than only the monthly payment.
Check whether the dwelling coverage amount would reasonably cover rebuilding costs.
Review the amount and limitations for belongings inside the home.
Liability protection can be important if someone is injured on the property or if covered property damage claims arise.
A lower premium may come with a higher deductible. The deductible should be included when comparing policies.
Water backup, equipment breakdown, scheduled personal property, and other endorsements can affect both coverage and cost.
Check whether the quote includes the Costco member discount, home-protection discounts, new-home discounts, and multi-product savings when applicable.
A simple calculation can help demonstrate the effect of a discount.
Potential annual savings = Original premium × discount percentage
For a $2,400 annual premium:
Again, these are mathematical examples rather than Costco's published discount levels.
The actual Costco member discount should be taken directly from the personalized quote.
Bundling home and auto insurance can potentially produce additional savings.
Costco's insurance program states that members may save more by bundling car and home insurance. American Family Insurance also lists multi-product discounts for customers purchasing multiple policies.
However, bundling should be evaluated using the total cost of both policies.
A lower home premium does not necessarily produce an overall saving if the auto policy becomes significantly more expensive. Comparing the combined annual cost can provide a clearer picture.
A Costco member discount does not protect a policy from broader insurance-market changes.
Home insurance premiums can increase because of higher rebuilding costs, severe weather losses, claims trends, inflation affecting construction materials and labor, and changes in underwriting.
Individual circumstances can also cause a premium to change at renewal.
This means a policy can continue receiving a membership discount while the underlying premium still increases.
For eligible Costco members, the program can be worth comparing because it combines a membership-related discount with other potential insurance discounts and benefits.
The strongest value may come when several qualifying factors apply at the same time, such as:
The final decision should be based on the complete policy price and coverage rather than the Costco membership discount alone.
There is no single nationwide savings percentage published for Costco members. Eligible members can receive an exclusive discount, while the actual amount depends on state, property, underwriting, and other factors.
The Costco member discount is subject to eligibility and underwriting requirements. It is not offered on home insurance in Florida and Tennessee under the current program terms.
Yes. Qualifying Executive Members may receive benefits such as up to $1,000 for certain home glass repairs and up to $100 per qualifying home lockout occurrence, subject to policy terms, limits, and state restrictions.
Potentially. The Costco insurance program and American Family Insurance list multi-product discounts that may apply when qualifying policies are combined.
No. The Costco member insurance program is provided through American Family Insurance and related insurance companies rather than Costco directly underwriting the homeowners policy.
No. Insurance discounts, underwriting rules, policy features, and state regulations can cause significant differences in pricing and eligibility.
Costco members can receive an exclusive home insurance discount in qualifying states in 2026, but there is no single nationwide percentage or dollar amount that applies to every homeowner.
Potential savings can become greater when the Costco member discount is combined with qualifying discounts for home protection, a newer home, a recently replaced roof, or multiple insurance policies.