You would have to assume the financial burden of your own legal defense. If your defense is not successful, the result could be a total loss of title. The title insurance company pays the lender's loss and is entitled to take an assignment of your debt. You are out your down payment, other equity in the property which you have accumulated, and your home. And you still owe the remaining balance on your note.
Title insurance is issued after a careful examination of copies of the public records.
But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. Title insurance will pay for defending against any lawsuit attacking your title as insured and will either clear up title problems or pay their losses. For a one-time premium, an owner's insurance policy remains in effect as long as you or your heirs, retain an interest in the property or have any obligation under a warranty in conveyance of it. Owner's residential title insurance, issued simultaneously with a loan policy is the best title insurance value you can get.