No, it is common here to shave the commission some, if that is okay with the broker's policy.

The person who responded to this either doesn't understand lender's loan policies or is being deliberately misleading.

You should have your business name added as "Additional Insured" and for one thing it will notify you if the policy is in jeopardy of being terminated for non-payment.  

I know that most policies do not cover it unless you specifically purchase it.

In the mean time, buy an extra 1m in liability on your existing insurance policies(it's cheep).  

Otherwise, just get a good umbrella policy.

He validated that my policy was a good one.   

I am surprised that a bank can be wiped out after only 4 years but that makes sense for a public policy standpoint of allowing properties to get clear title instead of remain in limbo forever.

You sell it during the redemption period but it would need to be a cash sale since no title company would write a title policy until the redemption period is up.

We have a strict no-eviction and no criminal background policy at my place.Don be stingy.