Coakley challenges property insurance rate increase

Massachusetts Attorney General Martha Coakley is challenging steep rate increases proposed by the state's home insurer of last resort.

Coakley has asked the state insurance commissioner to reject annual increases of 25 percent for homeowners in coastal areas such as Cape Cod, New Bedford and Fall River. Statewide, this year's increases would average 13.6 percent.

The rate increase would follow a 25 percent jump last year on Cape Cod, where fears of hurricane damage have led insurance companies to pull out.

The so-called FAIR plan is a state-created insurer for cases where private insurers decline coverage. More than 150,000 homeowners participate.

Coakley says this year's proposed rates aren't justified and will leave many homeowners unable to afford coverage. (AP)