What Company Backs Costco Home Insurance In 2026?

Homeowners insurance sold through the Costco membership program is not underwritten by Costco itself, but by an established insurance provider that partners with the retailer to offer coverage exclusively for its members. Knowing the identity of that insurer, along with the coverage options and advantages it provides, helps homeowners evaluate whether the plan fits their needs in 2026.

Coverage Options

Costco’s home insurance program typically offers standard homeowners coverage, including protection for the dwelling structure, personal property, liability, and additional living expenses if a home becomes temporarily uninhabitable. Optional add-ons such as scheduled personal property coverage for valuables, water backup protection, and identity theft coverage are often available depending on the state and policy terms. Members can usually customize deductibles and coverage limits to match their home’s value and personal risk tolerance.

Many policies also include discounts for bundling home and auto insurance, installing security systems, or maintaining a claims-free history. Because coverage details can vary by region and change from year to year, homeowners should review the specific policy documents provided at the time of purchase rather than relying solely on general program descriptions.

Advantages of Partnering with a Trusted Insurer

One of the main draws of Costco’s insurance program is the reassurance that comes from working with an established, financially stable insurer rather than a lesser-known startup. A trusted insurer typically brings a longer track record of claims handling, broader reinsurance backing, and more predictable customer service standards. This can matter significantly when a homeowner needs to file a claim after a storm, fire, or other unexpected event.

Additionally, membership-based insurance programs often negotiate preferential rates or added perks because they represent a large pool of policyholders. This can translate into modest premium discounts or enhanced customer support channels that might not be available through a standalone retail insurance purchase.

Who Backs Costco Home Insurance in 2026?

As of the most recent available information, Costco’s home and auto insurance program operates under the name Connect, powered by American Family Insurance. This relationship dates back to 2019, when American Family Insurance acquired the program that was previously administered by Ameriprise Financial. Since that transition, American Family Insurance has continued to underwrite and manage the policies offered to Costco members, while marketing the product under the Connect brand specifically for this membership channel.

American Family Insurance is a long-standing insurer with decades of experience in property and casualty coverage across the United States. Because insurance partnerships and underwriting arrangements can shift over time, members are encouraged to confirm the current underwriter listed on their policy documents rather than assuming past arrangements remain unchanged indefinitely.

For homeowners comparing their options, it can help to see how the Costco-affiliated program stacks up against other well-known providers in terms of services and features.

Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.

Choosing a homeowners insurance policy through a membership program like Costco’s can offer convenience and the comfort of working with a recognized insurer, but it remains important to compare coverage details, exclusions, and service quality against other available options. Understanding who actually underwrites the policy, what coverage options are included, and how the partnership benefits policyholders allows homeowners to make a more informed decision about protecting one of their largest investments.