On these types of claims the loan holder is covered as an additional insured and is named on all settlement checks as long as they are listed on the policy as the mortgagee. 

The title company/escrow settlement can type the contracts.

As lenders we are also obligated to verify that you are still employed at least 10 days - before settlement, and with the influx of volume that all lenders have experienced due to these lower rates, I would imagine that your lender could possibly be making  those calls up till the day before closing just because of the volume. 

I simply want someone to help coordinate a settlement/ misunderstanding. 

Almost always, the insurer will negotiate a settlement before the case goes to trial.In summary, it is good to have not only property insurance, but an umbrella policy, if the claim reaches into the millions of dollars (which it can if there is a disabling injury or death).But, just as important as good insurance, is good risk management of your property. 

You will want to look for closing Attorneys in NY state (not title companies) & you should be looking for two of them because NY does not allow the same attorney doing title work to also be the settlement agent. 

Usually the line item on your settlement statement is much more than the real cost of a credit report.

Items on my checklist include, everything I need to do prior to settlement for it, day of purchase items, 7 days of ownership, 30 days of ownership, final walkthrough, etc.

In addition, the owners will pay $25,000 to set up a settlement fund to compensate anyone else who might have been harmed.How can I avoid this?

https://www.gozego.com/ integration with Rentmanager allows for 24 hr settlement.