The way you handle this situation is to prove that you purchased the title insurance.
Let me talk about being a smart title insurance consumer. Make absolutely certain that you do these two things before you close:
- Get and review carefully the title insurance commitment.
- Review the HUD-1 Settlement Statement to be certain that it clearly shows the name of the title company issuing the insurance and that the name matches the name of the company on the title commitment. Also make certain that the HUD-1 shows that you have paid for owner coverage.
Good luck. I hope that helps.