That's a judgement call. Would you be able to accept the loss of the money you paid for the contract if it turns out you didn't receive a clear title? Maybe someone forged a signature in a divorce? Or maybe the contract was owned by several individuals and one or more didn't sign the closing documents? Didn't satisfy a lien? There are lots of reasons that you may not get a clear title. If something happens, the title company will be on the hook if they accepted the premium. Chances of those things might be small and some people are willing to accept the risk to save the title insurance premium. Only you know your personal risk tolerance.