Costco Home Insurance Review

Save on coverage with membership perks

Ratesopedia’s Take: Costco does not currently offer home insurance to Canadian members. While U.S. members can access home insurance through CONNECT (powered by American Family Insurance), this program is not available in Canada. Canadian Costco members should compare rates from traditional insurers, many of which offer member discounts and bundling opportunities that could deliver similar savings.

What Costco Offers in the U.S.

In the United States, Costco partners with American Family Insurance to offer home insurance through the CONNECT program. This partnership provides exclusive member discounts and additional perks designed to add value beyond standard policies.

U.S. members typically receive benefits such as glass repair coverage, identity theft protection, and roadside assistance. The program covers dwelling protection, personal property, liability, and loss of use—standard components of most homeowners policies.

The actual savings depend on multiple factors including your home’s location, rebuild cost, claims history, and the specific coverage options you select. Rates and terms may vary by financial institution.

Costco Insurance in Canada

Canadian Costco members do not have access to the same home insurance program available in the United States. While Costco offers auto insurance in certain Canadian provinces, home insurance is not part of the current product lineup for Canadian members.

This means Canadian homeowners looking for insurance coverage will need to explore options from traditional insurance providers, brokers, or online comparison platforms.

Home Insurance Costs in Canada

Understanding typical home insurance costs in Canada helps you evaluate whether you’re getting competitive pricing. As of early 2026, the average home insurance premium in Canada sits around $1,300 annually, though this varies significantly by province and individual circumstances.

Home insurance premiums increased by 7.8% year-over-year at the end of Q4 2025, according to Applied’s Rating Index. Some provinces experienced higher increases—Alberta saw premiums rise by 13.5%, while Ontario’s increase was more moderate at 4.3%.

Factors That Affect Your Rate

Your home insurance premium depends on several key factors that insurers use to assess risk. These elements help determine how much you’ll pay for coverage.

• Location: Homes in areas prone to natural hazards such as floods, wildfires, or severe storms typically face higher premiums due to increased risk.
• Home age and condition: Older homes or properties requiring repairs may cost more to insure because they present higher risks for claims.
• Claims history: If you’ve filed multiple claims in recent years, insurers may view you as a higher risk and charge accordingly.
• Coverage amount: Higher policy limits and lower deductibles will increase your premium, while choosing higher deductibles can reduce your cost.
• Safety features: Homes equipped with monitored alarm systems, fire alarms, reinforced windows, or updated electrical and plumbing systems may qualify for discounts.

Provincial differences also play a significant role. For example, coastal provinces may face higher premiums due to hurricane and storm exposure, while prairie provinces might see increases related to hail damage.

These figures represent averages for March 2026 and illustrate how location impacts pricing. Comparing savings accounts alongside your insurance costs can help you budget more effectively for homeownership expenses.

Alternative Options for Canadians

Without access to Costco home insurance, Canadian members have several strong alternatives that could deliver comparable or better value. Many insurers offer member discounts, bundling opportunities, and competitive rates.

Membership-Based Discounts

Several Canadian insurers offer discounts for members of specific organizations or loyalty programs. CAA members, for instance, can access discounts on home insurance in Ontario and other provinces.

PC Insurance provides discounts to PC Optimum members in good standing across most Canadian provinces. These affinity discounts function similarly to what Costco offers in the United States—providing savings based on membership status.

Online Comparison Platforms

Using online comparison tools allows you to quickly evaluate multiple insurers and find competitive rates. Platforms like Ratehub and YouSet let you compare personalized quotes from top Canadian providers in minutes.

These tools show you how different insurers price the same coverage, making it easier to identify the best value. The price difference between the most expensive and least expensive option can exceed $1,000 annually for the same coverage.

Bundle Your Policies

Combining your home and auto insurance with the same provider typically results in significant discounts. Ontario residents can save up to 25% by bundling these policies together.

This strategy not only reduces your premiums but also simplifies your insurance management—you deal with one company for multiple policies, making claims and renewals more straightforward.

How to Find the Best Rate

Finding competitive home insurance rates in Canada requires a strategic approach. Following these steps could help you secure better pricing while maintaining adequate coverage.

• Compare multiple quotes: Request quotes from at least three to five insurers to understand the price range for your specific situation.
• Review coverage carefully: The cheapest policy may not provide adequate protection. Ensure the coverage limits, deductibles, and exclusions meet your needs.
• Ask about available discounts: Inquire about claims-free discounts, bundling opportunities, mortgage-free discounts, and safety feature credits.
• Consider your deductible: Choosing a higher deductible lowers your premium, but make sure you could afford to pay that amount if you need to file a claim.
• Pay annually if possible: Some insurers offer discounts when you pay your full annual premium upfront rather than monthly.
• Review annually: Your circumstances and insurance needs change over time. Reviewing your policy each year ensures you maintain competitive pricing.

If you manage your finances strategically, pairing insurance shopping with reviewing chequing accounts and other financial products can optimize your overall household budget.

What to Ask Insurers

When speaking with insurance providers, asking the right questions helps you understand exactly what you’re getting. This clarity prevents surprises when you file a claim or receive your renewal notice.

• What perils are covered, and what exclusions apply to my policy?
• Does the policy cover flood damage, or do I need a separate endorsement?
• What is the replacement cost of my home, and how was it calculated?
• How much would my premium decrease if I increase my deductible?
• What discounts am I currently receiving, and are there others I qualify for?
• How does the claims process work, and what documentation will I need?

Bottom Line

Costco home insurance is not currently available to Canadian members, despite being an option for U.S. Costco members through the CONNECT program. Canadian homeowners looking for competitive coverage will need to explore alternatives from traditional insurers, online comparison platforms, or membership-based discount programs.

The good news is that several strong alternatives exist. Insurers like PC Insurance, CAA Insurance, Intact, and Sonnet offer comparable member discounts and bundling opportunities. Using online comparison tools allows you to evaluate multiple providers quickly and identify the best value for your specific situation.

To find the best rate, compare quotes from at least three to five insurers, ask about all available discounts, and review your coverage needs annually. Strategic decisions like bundling home and auto insurance, installing safety features, and choosing appropriate deductibles can significantly reduce your premiums while maintaining adequate protection. Sign up for our newsletter to stay informed about the latest insurance deals and financial strategies.

Costco Home Insurance – FAQ