James, a retired senior living in the quiet town of Lucerne in Northern California, never imagined that simply staying insured would become a luxury he could barely afford. At 65 years old, he lives with his wife, Kelly Duarte, who is 59 and still working. The couple resides in Lake County, where a growing number of seniors are being pushed to the financial brink by skyrocketing insurance premiums.
James receives just over $1,300 a month from Social Security. Over the span of 20 years, he and Kelly paid manageable rates on their homeowners insurance, with premiums fluctuating from $700 to $1,700 annually. But one year ago, their provider, State Farm, increased their homeowners insurance by a staggering 173%. The policy jumped from $1,700 to $4,654 per year.
“We’re lucky we still have insurance at all,” James explained. “A lot of folks in Lucerne have been dropped entirely. According to our agent, Lucerne gets the highest increases over the board, and that’s including our auto policy which went up 62%.”
Their combined monthly cost for homeowners and auto insurance ballooned from $325 to $625 in just a year, nearly half of James’s Social Security check. “We are slowly going under,” he said. “And we’re not alone. So many other seniors around here are going through the same thing.”
When James questioned the premium hike, he was met with a wall of corporate language. State Farm sent a multi-page letter justifying the increase, but didn’t offer any tangible help. In his view, the explanation was “just hogwash.”
The couple tried everything they could to reduce costs. They asked about potential discounts, particularly for their security camera system; a safety feature James had read could lower premiums by up to 15%. But when he contacted his agent, she denied them any discount. “She didn’t even consider it,” James said. “I looked it up online and saw the discount policies. When I brought that up, she said she’d submit it, but we still got nothing.”
It didn’t stop there. In 2023, James and Kelly spent $13,000 to put a new roof on their home, an upgrade that insurers typically reward with reduced premiums. “I’ve always received discounts for new roofs in the past,” James said. “Not this time. Nothing from State Farm.”
Instead of relief, they were hit with yet another increase in March 2025, an additional $147 tacked onto their already massive homeowners premium. That brought their annual payment to over $4,800. “They blamed it on a building ordinance update and minor changes in home value,” James said. “It’s ridiculous.”
James and Kelly have been with State Farm for around eight years, but they feel their loyalty hasn’t made a difference. Despite living in a high fire-risk area on a hilltop above Clearlake, James takes extensive precautions to reduce the danger, including regularly clearing vegetation and maintaining the property to minimize fire hazards.
Their ongoing efforts are no longer enough, as keeping up is becoming increasingly difficult. James feels there’s a lack of support from insurance agents and believes rising costs are only benefiting them. He’s also concerned for his neighbors, many of whom have lost their coverage or are now going without insurance altogether.
He shared one story about a neighbor across the street who was able to get a $1,700/year policy from USAA. “He’s right across the street. Same fire zone. Why is his so much cheaper?” James asked. “It makes no sense.”
Even their second property, a rental in Shasta Lake, is facing instability. The couple received a letter that Farmers would not renew their landlord policy but that they’d be automatically transferred to another provider, Foremost. “We’re not holding our breath,” James said. “We’re expecting another huge increase.”
The system, they feel, is failing California seniors. “It’s been mismanaged for decades, and now we’re paying the price,” James said. “State Farm, right now, is taking all of our spending money,” he said. “I don’t even have beer money anymore.”
For James and Kelly, and countless other Californians like them, that’s not a joke. It’s a grim reality.
