Costco homeowners insurance: How does it work?

Costco members can get discounts on Ameriprise homeowners insurance when they purchase coverage through the wholesale store.

Kara McGinley

Kara McGinley

Published May 1, 2020

KEY TAKEAWAYS

  • Costco does not sell its own homeowners insurance, but it does offer members a discount on insurance through Ameriprise

  • Costco members who buy a policy through Ameriprise receive additional coverage like identity theft protection and stolen credit card protection

  • Even with the discount, Ameriprise might not be the best insurance option. Be sure to shop around and get quotes from multiple carriers

Costco members get a surplus of benefits outside of the brick and mortar warehouse store. In addition to household goods, Costco members can get discounts on everything from car insurance to cruise ship vacations to rental cars.

If you’re a Costco member, you are eligible to get homeowners insurance discounts through Ameriprise Insurance, a subsidiary of American Family Insurance. Ameriprise sells the homeowners insurance policies, not Costco. That said, whether or not you should buy homeowners insurance through Costco will depend on a variety of factors.

In this article:

Does Costco sell homeowners insurance?

No, and Costco itself is not a homeowners insurance carrier. However, it does offer discounts to members on homeowners insurance through Ameriprise, a separate partner. If you are a Costco member, you can go online to see the member services that Costco offers. There’s a list of various financial products from different companies that offer discounts for Costco members, including homeowners and auto insurance.

If you select homeowners or auto insurance, you will be taken to the Ameriprise website where you can apply for homeowners insurance through the regular application process. You will receive a homeowners insurance quote through Ameriprise with a Costco membership discount applied to your premium. Essentially, Costco acts as an agent and Ameriprise is the insurance carrier.

In addition to discounted homeowners insurance premiums through Ameriprise, Costco members also receive additional coverage that is not automatically included in a basic homeowners policy.

Below are some examples of the additional protection Costco members receive.

  • Identity theft protection
  • Stolen credit card use or check fraud protection
  • Food spoilage protection
  • Lock replacement expense protection

Ameriprise offers even more benefits for Costco executive members by adding glass repair reimbursement and home lockout assistance to their homeowners insurance policies.

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Is Ameriprise homeowners insurance any good?

Ameriprise offers the same homeowners insurance coverages as every major insurance company. Homeowners insurance is made up of different categories of coverage and each one offers a different type of protection. How much protection you buy will affect how expensive your premiums are.

A basic homeowners policy will include the following coverage.

Coverage typeWhat does it cover?What's the coverage limit?Do you have to pay a deductible?
Dwelling coverageCovers the structure of your home and built-in appliancesShould be equal to your home's replacement costYes
Other structures coverageCovers detached structures on your property10% of dwelling coverageYes
Personal property coverageCovers your personal belongings both inside and outside the home50% of dwelling coverageYes
Loss-of-use coveragePays for additional living expenses while your home is being repaired20% of dwelling coverageYes
Personal liability coveragePays for legal and medical bills if you're held liable for injury or personal property damage to someone else$100,000-$500,000No
Medical payments coverageIf a guest is injured in your home, it pays for their medical bills, regardless of who is at fault$1,000-$5,000No

As for how Ameriprise is rated by its actual customers, it earned a score of 79 out of a possible 100 from Consumer Reports, which aggregated information from 6,940 of its members whose rating was based on homeowners insurance claim satisfaction.

Ameriprise’s claim score actually put them last among surveyed companies for claim satisfaction. However, customers rated simplicity of the claim process and damage amount as “good” and timely payment, agent courtesy, promptness of response, and ease of reaching agent as “very good”.

The best way to know if a homeowners insurance company is right for you is to shop around and read reviews.

Is Costco homeowners insurance worth it?

The cost of homeowners insurance depends on a variety of factors, some that you can control and some that you cannot. When calculating your quote, insurance companies will factor in what ZIP code you live in, how old your home is, your credit score, and more. The average annual homeowners insurance premium is around $1,200, but costs vary widely across the U.S.

An example of coverage limits in a standard HO-3 homeowners insurance policy:

Coverage typeCoverage limit example
Dwelling coverage$300,000
Other structures coverage$30,000 (10% of dwelling coverage)
Personal property coverage$150,000 (50% of dwelling coverage)
Loss-of-use coverage$60,000 (20% of dwelling coverage)
Liability coverage$100,000-500,000
Medical payments coverage$1,000-5,000

Because there are so many factors that go into calculating a homeowners insurance premium, it’s difficult to predict how much an Ameriprise homeowners insurance policy with a Costco membership discount applied might cost. Costco features reviews from members on their site, stating that 89% of Costco members who bought an Ameriprise homeowners insurance policy are happy with their coverage.

Since homeowners insurance prices vary from state to state and house to house, it’s important that you shop around. There’s a chance that, even with your Costco membership discount, another insurance company could give you a lower rate. An independent agent can help you compare quotes from multiple homeowners insurance companies and choose the best policy for you.