Doesn’t my sale contract, which specifies “marketable” title, cover me?
In theory, it should; but in reality, you would still need to initiate expensive legal action against the seller; and your recovery would be subject to the seller’s ability to pay damages.

Should I buy an owner’s policy now even if I have no equity in the property?
Your title policy reimburses your equity, up to the face value of the policy. However, even with no equity, your policy covers your free defense of title, and should title fail, your note could not be called by the title company (see first question, above). Also, when you purchase a fee policy simultaneously with the mortgage policy, you get a very substantial discount

What if my seller has a fee title policy already? Does that protect me?
No. The previous owner could have encumbered the property many times since the policy was issued. Additionally, should a title defect arise that pre-dates your ownership, you would have to take action against the seller, and the title company would be obligated to represent the defendant in your action

What if the property I’m buying has been held in the same family for ages?
A long-held property is no guarantee of clean title. In fact, some of the most tangled title claims arise from split interests, unrecorded private mortgages, discoveries of wills years after a sale, frauds and forgeries stemming from divorces and other family arguments.

Doesn’t everybody need title insurance, then?
It is important to understand that choosing not to buy a title policy makes the buyer a self-insurer. This may be a legitimate choice for people who can afford to defend an action in court, and possibly to risk losing their home and their land without suffering a catastrophic financial setback. Most people, though, should have title insurance.