In fact, your lender will insist on it — and you’ll have to pay. The policy protects the lender (but not you) should there be any claim on the land from former owners — say a divorced woman whose ex-husband forged her signature on a quit-claim deed, a mechanic’s lien from an unpaid subcontractor or a long-lost heir.
Educate yourself at the  Real Estate Journal.
…you do need title insurance. In fact, your lender will insist on it — and you’ll have to pay. The policy protects the lender (but not you) should there be any claim on the land from former owners — say a divorced woman whose ex-husband forged her signature on a quit-claim deed, a mechanic’s lien from an unpaid subcontractor or a long-lost heir.
Update 10 December 2010: This is a video describing what Title Insurance is and why you may want to buy the Owner’s title insurance policy.