Owner's Title Insurance Claim

[Bianca Meant]

Purchased a fix and flip in 2022. started the work and then was approached by a buyer who wanted to take the property off my hands.. In the escrow period, this buyer discovered during their title search that the home had a 300k lien on it as a result of a code violation related to the home not being connected to the sewer . My title company had missed this 200 dollar a day code violation that had been accruing since 2017, smh. (Home is only worth 225k by the way) Went back to my title company to see how this was missed during title search etc and how I was able to close and was told the lien was extinguished in a foreclosure. Unfortunately, the city informed me that this was not the case . It was another lien on the home that was extinguished during the 2020 foreclosure not this 300k lien. I have filed a claim as I have an owner's title policy. Claim was initially denied due to title insurance claiming lien was not publicly recorded. Upon further investigation, we found the filing in which claim was filed in the local clerk of court. I have since filed an appeal. How do claim payouts work and is it possible that I could get a payout of the entire policy which is 225k?