I contacted the Insurance Commissioners office and they faxed a copy of "Directive 98-PC-1." It states that land values may not be included in the computation when determining the amount of appropriate homeowners insurance because homeowners insurance DOES NOT INSURE THE LAND on which the home is located. O.C.G.A. 33-6-5(6)(A) states: "No person shall knowingly collect any sum as premium or charge for insurance, which insurance is not then provided or not in due course to be provided subject to acceptance of the risk by the insurer by an insurance policy issued by an insurer as permitted by this title."
Insurance agents receiving premiums for properties that exceed the replacement value may be fined up to $1,000 for each and every act in violation of that Code Section. The Directive goes on to say that in some cases the penalties may go up to $5,000 for each and every act or violation.
If anyone would like a copy of this Directive, provide your email address or send me a PM and I will email it to you.
When you lose, don't lose the lesson.