What does REO Insurance mean in real estate?
Homeowner, hazard and other insurance types are often listed on property paperwork so that owners are always covered for any damages. However, there is another insurance type that's not as commonly known. REO insurance
refers to a policy that's owned by a lender or investor on a particular property. This coverage activates when damages occur without a traditional homeowner living at the residence. REO policies have different meanings in real estate based on the property's individual situation.